CANADA FX DEBT-C$ rangebound ahead of Europe meeting

Fri Sep 16, 2011 8:15am EDT
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 *C$ flat at C$0.9844 vs US$, or $1.0158
 *Bond prices little changed
 By Claire Sibonney
 TORONTO, Sept 15 (Reuters) - The Canadian dollar was little
changed against the U.S. dollar on Friday morning as cautious
investors awaited a meeting of European finance ministers that
might finally come up with action to fight a worsening debt
 European shares rallied a day after coordinated moves from
central banks to boost liquidity, but U.S. futures and the euro
fell, looking vulnerable to the downside if the meeting in
Poland, which the United States will join, fails to agree on
further measures. [ID:nnL3E7KG0KC]
 "Generally speaking over the last few months, dollar/CAD
has been driven by risk sentiment ... and with the euro
trekking a little bit lower today, people are concerned over
some of the headline risk that could be emanating out of
Europe," said Mazen Issa, Canada macro strategist at TD
 "I think the general view is that if there ever was a
(Greek) default, they would rather push that out into the
future when the economic backdrop is at least in a better
position than it is now, but we'll see what happens."
 At 8 a.m. (1200 GMT), the Canadian dollar stood at C$0.9844
to the U.S. dollar, or $1.0158 U.S. cents, slightly down from
Thursday's North American finish at C$0.9840 to the U.S.
dollar, or $1.0163 U.S. cents.
 Investors will also have an eye Canadian securities
transaction data and the Thomson Reuters/University of Michigan
U.S. consumer sentiment survey later in the morning.
 Canadian bond prices were similarly little changed.
 The two-year bond CA2YT=RR was off 2 Canadian cents to
yield 1.036 percent, while the 10-year bond CA10YT=RR was
down 3 Canadian cents to yield 2.299 percent.
  (Reporting by Claire Sibonney, Editing by Chizu Nomiyama)