CANADA FX DEBT-C$ little changed in light holiday trade
* C$ flat, stands at C$0.9598 vs US$, or $1.0419
* Bond prices edge lower across curve
By Claire Sibonney
TORONTO, July 4 (Reuters) - The Canadian dollar was little changed against the U.S. dollar on Monday in holiday-quieted trading despite a warning by Standard & Poor's that a debt rollover plan could put Greece into selective default.
On Saturday, euro zone finance ministers approved a 12 billion euro installment of aid for Greece and said the details of a second aid package would be finalized by mid-September.
While expectations for a second Greek bailout kept riskier assets including markets underpinned S&P's latest warning served as a reminder to investors that the euro zone's woes are not over. [nL3E7I40H3]
"It's extremely, extremely quiet as far as the amount of people that are even inquiring as to where prices are," said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets, noting the Independence Day holiday in the United States on Monday following Canada Day on Friday.
"Those in the corporate community were definitely prepared for this and have done what they needed to for the end of June and they don't expect to enter into the markets until tomorrow when we expect normal activity to resume."
With respect to other currencies such as the euro, Gavsie said concern over the Greek bailout is still dominating sentiment, but not dramatically so. [FRX/]
Canadian data that showed slack global demand for industrial metals dampened Canadian producer prices in May also had little impact on the domestic currency. [ID:nN1E76306D]
At 9:03 a.m. (1303 GMT), the The Canadian dollar CAD=D4 stood at C$0.9598 versus the U.S. dollar, or $1.0419, down from Friday's close at C$0.9590 to the U.S. dollar, or $1.0428.
"Within 10 to 20 pips ... it's so inconsequential. That's natural float, a few orders getting filled," added Gavsie.
Earlier in the session however, it firmed to as much as C$0.9580, or $1.0438, its best level since May 11. Gavsie said that level would serve as near-term resistance for the Canadian currency.
Canadian bond prices were also flat, lacking direction from their U.S. counterparts. The two-year bond CA2YT=RR was down 4 Canadian cents to yield 1.613 percent, while the 10-year bond CA10YT=RR was up 5 Canadian cents to yield 3.120 percent
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