* C$ at C$1.0137 vs US$, or 98.65 U.S. cents
* Overnight strength ends after German finmin comments
* Consolidation seen after big moves last week
TORONTO, Oct 17 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart in early trade on Monday
despite overnight strength as hopes for a resolution to the
euro zone debt crisis were tempered ahead of a European Union
The Canadian currency extended last week's 2.7 percent gain
in morning trade in Europe, but fell back alongside the euro
after comments from German Finance Minister Schaeuble dampened
hopes for a solution to the region's debt crisis at this week's
The finance minister said the summit would not yield a
definitive solution to Europe's debt crisis. For details, see
"The comments by Schaeuble out of Germany caused the euro
to turn quickly lower ... so dollar-Canada is trading close to
the highs since our close on Friday," said David Bradley,
director of foreign exchange trading at Scotia Capital.
"After the big move last week I think we're going to see a
bit of consolidation for most of the currencies," he said.
"Dollar-Canada is probably going to consolidate above parity
but probably we'll stay below C$1.0225 type thing."
At 9:03 a.m., the Canadian dollar
C$1.0137 against the U.S. dollar, or 98.65 U.S. cents, down
slightly from Friday's close of C$1.0105 to the U.S. dollar, or
98.96 U.S. cents. The currency gained 2.7 percent last week as
global markets turned bullish.
World stocks held near a 1-1/2 month high as expectations
for solid third-quarter earnings and hopes for a resolution to
the euro zone debt crisis supported risky assets, but gains
were limited on caution ahead of the EU summit. [MKTS/GLOB]
The euro fell back and German government bonds bounced
higher after Schaeuble's comments.
"I cannot help but think most of the good news is already
priced into current market levels," John Curran, senior vice
president at CanadianForex, a commercial foreign exchange
dealing firm, said in a morning research note.
"EU leaders have given themselves one week to come up with
a sustainable plan to avoid a Greek default and contagion to
other nations, but the reality of any agreement is that the
process will take years to implement and achieve."
Curran sees short-term resistance at C$1.0145, C$1.0185 and
No major economic data is due out in Canada until the
consumer price index on Friday.
Wall Street was set for a slightly lower open after U.S.
stocks jumped on Friday following stronger-than-expected
earnings from Google Inc
. Corporate earnings kicked
into high gear on Monday with results from Citigroup Inc
and Wells Fargo & Co. [.N]
Canadian bond prices were higher across the curve. The
two-year Canadian government bond
rose 10 Canadian
cents to yield 1.047 percent, while the 10-year bond
climbed 50 Canadian cents to yield 2.347 percent.
(Reporting by Andrea Hopkins; editing by Jeffrey Benkoe)