CANADA FX DEBT-C$ slips against US$, jumps to 2-yr peak vs euro

* C$ slips from 7-week high against US$
    * C$ rallies to 2-year peak vs euro
    * Bond prices flat across the curve
    * ECB, BoE and China central banks move to stimulate

    By Claire Sibonney
    TORONTO, July 5 (Reuters) - The Canadian dollar fell from a
seven-week high against the U.S. dollar on Thursday after moves
by global central banks to provide further monetary stimulus
fell short of ramped-up expectations.
    Against the euro, however, the Canadian currency
rallied, touching C$1.2524, or 79.85 euro cents, its strongest
level since mid-June 2010.
    The European Central Bank cut interest rates to a record low
to breathe life into a deteriorating euro zone economy but
steered clear of more dramatic measures such as buying
government bonds or flooding banks with fresh liquidity, putting
broad pressure on the struggling euro.  
    "We've seen some volatility around the decisions this
morning," said Shaun Osborne, chief currency strategist at TD
    "To some extent, perhaps the impression is that they've
fired their last bullet here which I think has turned sentiment
a little sour." 
    Against the greenback, the Canadian dollar retraced gains
from an initial positive reaction to the ECB rate cut. The
domestic currency breached the 200-day moving average at
C$1.0118 versus the U.S. dollar, or 98.83 U.S. cents, all the
way to C$1.0100, or 99.01 U.S. cents, its best level since May
    By 11:15 a.m. (1515 GMT), the Canadian currency slipped to
C$1.0137 against the U.S. dollar, or 98.65 U.S. cents, a tad
weaker than Wednesday's North American session close at C$1.0132
versus the greenback, or 98.70 U.S. cents.
    Osborne put the near term range between par and C$1.0350.
    Earlier in the session on Thursday, riskier assets also
benefited from a surprise interest rate cut by China and as the
Bank of England launched a third round of monetary stimulus.
     "I think all in all the overall theme is that growth has
been repriced lower in markets and central banks are reacting
and so I think typically that should be what leads us into a
risk rally which would be positive for CAD," said Camilla
Sutton, chief currency strategist at Scotiabank.
    She cautioned however that "there's still tremendous
uncertainty," particularly leading into U.S. jobs data on
    On the data front on Thursday, the pace of growth in the
U.S. services sector slowed in June to its lowest level since
January 2010 as new orders waned, though employment improved.
    Meanwhile, the U.S. private sector added more jobs than
expected in June, heightening expectations for the next day's
official employment report. Better-than-expected jobs data on
Friday could be a positive for risk assets, or negative if 
markets interpret it as reducing the likelihood the U.S. Federal
Reserve will take further steps to stimulate the economy.
    Canadian bond prices were little changed across the curve,
underperforming their U.S. counterparts. [US/}
    Canada's two-year government bond unchanged to
yield 1.028 percent, while the benchmark 10-year bond
 was off 2 Canadian cents to yield 1.713 percent.