CANADA FX DEBT-C$ firms in range-bound trading as Greece commands attention
(Adds comments, details, closing figures) * Canadian dollar at C$1.2323 or 81.15 U.S. cents * Bond prices mostly lower across the maturity curve By Solarina Ho TORONTO, June 25 (Reuters) - The Canadian dollar firmed against the greenback on Thursday, recouping the previous session's losses, but its move was limited by this week's lack of domestic economic data and by the market's focus on talks to reach a Greek debt deal. Markets were anxiously awaiting news on whether debt-laden Greece and its creditors will reach an 11th-hour deal to stave off default. "Everybody's just watching the Greek headlines, whether you like it or not," said Benjamin Reitzes, senior economist and foreign exchange strategist at BMO Capital Markets. "It's going to be tough for markets to really solidly a move in any direction. There's range-bound action for a lot of currencies. It's just tough to get a definitive direction because we don't know what the consequences might be." The Canadian dollar closed at C$1.2323 to the greenback, or 81.15 U.S. cents, stronger than the Bank of Canada's official close of C$1.24, or 80.65 U.S. cents, on Wednesday. It traded between C$1.2315 and $1.2399 against the U.S. dollar during the session. Data on Thursday showed U.S. consumer spending recorded its largest increase in nearly six years in May, the latest evidence that U.S. economic growth has been picking up steam in the second quarter after a tough first quarter. The Canadian currency could experience more volatility next week, with less liquidity expected due to the Canada Day holiday on Wednesday and the U.S. Fourth of July holiday on Friday. Canadian April GDP data is due on Tuesday and U.S. employment figures on Thursday. Canadian government bond prices were mostly lower across the maturity curve, with the two-year price down 4 Canadian cents to yield 0.621 percent and the benchmark 10-year falling 36 Canadian cents to yield 1.814 percent. The Canada-U.S. two-year bond spread was -6.7 basis points, while the 10-year spread was -59.3 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
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