CORRECTED - CANADA FX DEBT-C$ cuts losses as euro, shares rise
(Corrects support level in 6th paragraph to C$0.9950, not C$0.9550)
* C$ at C$0.9879 vs US$ or $1.0122
* Bond prices fall across curve
By Claire Sibonney
TORONTO, Sept 14 (Reuters) - The Canadian dollar dipped against the U.S. dollar on Wednesday but losses were limited by healthier risk appetite reflected in a bounce in the euro and European shares after some positive news for the region's debt crisis.
The European Commission said it would soon present options for the introduction of euro area bonds, a development investors saw as a significant step despite German opposition to the idea. [ID:nL3E7KE1P9]
"The developments out of Europe continue to be the most meaningful influence in currency valuations," said Jack Spitz, managing director of foreign exchange sales at National Bank Financial.
"Overlooked in the broader scheme of things, Canada is trading marginally lower than its close yesterday but it's still not trading with the bid to dollar/Canada that took it above parity earlier on in the week."
At 7:56 a.m. (1156 GMT), the Canadian dollar stood at C$0.9879 to the U.S. dollar, or $1.0122 U.S. cents, down from Tuesday's North American session close at C$0.9854 to the U.S. dollar, or C$1.0148.
Spitz noted support for the Canadian dollar between C$0.9950 to par with the greenback and resistance around its overnight high of C$0.9845.
North American data including domestic capacity utilization, U.S. producer prices, retail sales and business inventories will be watched for further direction in the currency.
Canadian bond prices were lower across the curve.
The two-year bond CA2YT=RR was down 4 Canadian cents to yield 0.963 percent, while the 10-year bond CA10YT=RR shed 27 Canadian cents to yield 2.230 percent. (Reporting by Claire Sibonney)
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