* Firms slightly to C$1.0467, or 95.54 U.S. cents
* Bond prices mostly weaker
By Claire Sibonney
TORONTO, Jan 21 (Reuters) - The Canadian dollar was little changed against the U.S. currency on Thursday, with traders looking to a Bank of Canada report that is expected to reaffirm expectations that rates will stay on hold until at least the middle of this year.
The Bank of Canada's Monetary Policy Report, due at 10:30 a.m. (1530 GMT) follows this week's rate decision statement and unexpectedly weak inflation data that have dampened expectations of early tightening by the Bank of Canada.
"To a large extent we've already had some insight into what the bank is thinking with the dovish bias that we had to the policy statement earlier this week so I shouldn't expect to see anything significantly new," said Shaun Osborne, chief currency strategist at TD Securities.
Osborne expects the recent sell-off in the Canadian dollar to stabilize over the next couple days as the U.S. dollar struggles to keep its upward momentum higher.
The Canadian dollar hit a session low of C$1.0525, or 95.01 U.S. cents overnight amid broadbased U.S. dollar strength.
The euro hit a five-month low against the dollar on Thursday, weighed down by concerns over Greece and other peripheral euro zone countries, and by data which pointed to possible slower growth in the currency bloc. [FRX]
"Just initial term, we may have run the course of this sell-off in the Canadian dollar here, I think it's starting to look a little bit undervalued," Osborne added.
At 8:44 a.m., the Canadian dollar was at C$1.0467 to the U.S. dollar, or 95.54 U.S. cents, compared with Wednesday's finish at C$1.0470 to the U.S. dollar, or 95.51 U.S. cents.
The currency firmed slightly after a report showed higher sales of automotive products pushed Canadian wholesale trade up by 2.5 percent in November from October, a leap that far exceeded expectations and indicated the worst of the recession was over. [ID:nN21208437]
Canadian government bond prices were mostly weaker, mirroring losses in U.S. Treasuries, which dipped as the market braced for details of upcoming U.S. auctions.
The two-year bond CA2YT=RR fell 2.5 Canadian cents to C$100.06 to yield 1.22 percent. But the 10-year bond CA10YT=RR rose 3 Canadian cents to C$102.60 to yield 3.422 percent. (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)