CANADA FX DEBT-C$ falls along with global stocks, oil

* 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 Jennifer Kwan
    TORONTO, July 5 (Reuters) - Canada's dollar fell from a
seven-week peak against the U.S. dollar on Thursday, weighed
down by weaker global stocks and commodity prices and after
moves by central banks globally 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.
    Canada followed moves in global markets where stocks fell on
Thursday after the biggest three-day rally of the year as
investors awaited clues on Federal Reserve stimulus and a jobs
report likely to show Europe's crisis weighing on the U.S.
    "I think most of the weakness has been a little bit of a
correction in the asset markets," said Shane Enright, an
executive director of foreign exchange sales at CIBC World
    "You've got oil prices pulling back a little despite a
bigger-than-expected drawdown," with similar moves in gold,
commodities and U.S. stocks, he said.
    The Canadian currency ended the session at C$1.0144
against the U.S. dollar, or 98.58 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.
    Earlier, the currency breached the 200-day moving average at
around 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 16.
    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.  
    Riskier assets had 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 the Canadian dollar,
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 Thursday data showed the pace of growth in the U.S.
economy's services sector slowed in June to its lowest level
since January 2010 as new orders waned, though employment
    Meanwhile, the U.S. private sector added more jobs than
expected in June, heightening expectations for Friday'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 mostly lower across the curve,
underperforming their U.S. counterparts. 
    Canada's two-year government bond prices were
unchanged to yield 1.028 percent, while the benchmark 10-year
bond was off 7 Canadian cents to yield 1.718