CANADA FX DEBT-C$ slips on euro zone doubts
* C$ falls to C$1.0247 vs US$, or 97.59 U.S. cents
* C$ lags other commodity currencies
* Bond prices mixed across curve, 2-year note up
By Claire Sibonney
TORONTO, Sept 28 (Reuters) - The Canadian dollar drifted lower against its U.S. counterpart on Wednesday as riskier assets remained vulnerable to doubts over the ability of European policy makers to stem a debt crisis that threatens to trigger a global recession.
The European Union confirmed negotiators would return to Greece this week to discuss issuing its next tranche of aid, the latest in a series of developments that have not changed the overall picture of uncertainty in the euro zone.
While prices for oil, a key Canadian export, were lower, the Canadian dollar was still underperforming other commodity-linked currencies. [O/R]
"We have had a very strong rally in equity markets and commodities over the last two sessions, but the Canadian dollar really hasn't followed through to the extent we thought it would," said Blake Jespersen, director of foreign exchange sales at BMO Capital Markets.
"I would call it a lower-beta currency when you look at some of the other commodity currencies, so it didn't sell off as much, and it hasn't rallied as much," Jespersen said.
At 8:02 a.m. (1202 GMT), the Canadian dollar CAD=D4 was at C$1.0247 to the U.S. dollar, or 97.59 U.S. cents, down from Tuesday's North American session close at C$1.0204 to the U.S. dollar, or 98.00 U.S. cents.
Jespersen noted significant Canadian-dollar support around C$1.03 and little in the way of resistance until the currency gets back toward parity.
Data on U.S. durable goods orders at 8:30 a.m. was expected to drive the Canadian dollar's direction.
"We continue to see very wide price action on any data and any headline, so markets are definitely jittery and liquidity continues to be a bit of a concern," he added.
Bond prices were mixed across the curve. The two-year Canadian government bond CA2YT=RR was up 11 Canadian cents to yield 0.962 percent, while the 10-year bond CA10YT=RR fell 8 Canadian cents to yield 2.204 percent. (Editing by Padraic Cassidy)
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