CANADA FX DEBT-C$ firms as markets overcome Greek fears

Wed Nov 2, 2011 4:42pm EDT
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   * C$ ends at C$1.0136 vs US$ or 98.66 US cents
 * Stocks, euro rise after selloff, despite Europe risk
 * Bond prices fall
 (Updates to close, adds comment)
 By Andrea Hopkins
 TORONTO, Nov 2 (Reuters) - The Canadian dollar ended
slightly stronger against its U.S. counterpart on Wednesday as
global markets bounced back from Tuesday's big drops despite
continuing fears that Greece's referendum could push the
country into default.
 U.S. and European stocks and the euro rose as buyers
emerged after the steep selloff sparked by Greece's decision to
hold a referendum on the European debt bailout plan. But
markets remained on edge as the future of the plan seemed to
hinge on the views of Greek voters.
 Less-dismal data on the U.S. job market and hopes of more
policy easing from the U.S. Federal Reserve and the European
Central Bank also supported stocks and the euro. [MKTS/GLOB]
 The Fed did not announce more monetary easing after a
two-day meeting of its federal open market committee (FOMC)
ended on Wednesday. But analysts said its statement and
Chairman Ben Bernanke's comments left the door open for more
stimulus if the economy needs it. For more, see [nW1E7JB00J]
 "We've had some volatility driven off headlines about
what's going on in Europe. The FOMC also to some extent drove
markets, but Bernanke comments don't tend to move the markets
around the way (ECB) comments do," said David Bradley, director
of foreign exchange trading at Scotia Capital.
 The Canadian dollar CAD=D3  ended the North American
session at C$1.0136 to the U.S. dollar, or 98.66 U.S. cents, up
slightly from Tuesday's North American session close at
C$1.0188 versus the greenback, or 98.15 U.S. cents.
 Bradley said he expected markets to consolidate ahead of
some of the risks that may arise in the next 48 hours, with
"reasonable support" for dollar-Canada around C$1.01.
 Markets will focus on the outcome of a European Central
Bank policy meeting on Thursday and on Canadian and U.S.
employment data on Friday.
 Canadian government bond prices were lower across the
curve. The two-year bond CA2YT=RR fell 8 Canadian cents to
yield 0.966 percent, while the 10-year bond CA10YT=RR dropped
9 Canadian cents to yield 2.171 percent.
 (Reporting by Andrea Hopkins; editing by Peter Galloway)