CANADA FX DEBT-C$ flat, bonds down as Greek deal stalls
* C$ ends exactly same as Friday's close at $1.0202
* Bond prices turn lower, risk assets find favor again (Adds details)
By Ka Yan Ng
TORONTO, June 20 (Reuters) - Canada's dollar CAD=D4 closed at exactly the same level against the U.S. dollar on Monday as it did on Friday, while bond prices fell, as markets absorbed news of a delay on a loan deal for Greece.
With no North American data to guide trading, foreign-exchange and fixed-income markets were left to seek direction from global equity and commodity markets, which started the day under pressure from the lack of weekend progress on Greece's debt troubles. [MKTS/GLOB]
Euro zone finance ministers delayed a final decision to July on extending another 12 billion euros in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures. For details, see [ID:nLDE75I0FM]
The Canadian dollar fell as low as C$0.9849 to the U.S. dollar early on, but pared losses throughout the session to close flat at C$0.9802 to the U.S. dollar, or $1.0202, exactly the same as Friday's North American close.
The two-year bond CA2YT=RR lost 6 Canadian cents to yield 1.521 percent, while the 10-year bond CA10YT=RR shed 17 Canadian cents to yield 2.966 percent.
While investors wrestled with whether Greece's fiscal crisis posed risks to the global economy, some riskier assets were favored as the day wore on. Toronto's main stock index rose, and U.S. crude oil futures also perked up.
"Things seemed to turn around as the day went on. Worries about Greece eased and the worries seemed a little overdone in the morning anyway," said Benjamin Reitzes, economist at BMO Capital Markets.
"We already knew they weren't going to come to any solution in that meeting. There's really no real new news."
Canada stepped up pressure on Europe on Monday to swiftly resolve the Greek debt crisis, warning that failure to do so could harm even Canada's relatively healthy banking sector. [ID:nN1E75J0OH]
In a sign that Europe's partners are increasingly jittery about a possible Greek default, Canadian Finance Minister Jim Flaherty said finance ministers and central bankers from the Group of Seven advanced economies discussed these concerns.
"The key, I think, and our message, is that delay is not desirable," Flaherty told reporters in Toronto.
Markets will next focus on Canadian retail sales for April, the Canadian leading economic indicator for May, and U.S. existing home sales for May, all on Tuesday morning. (Reporting by Ka Yan Ng; editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.