*C$ at C$0.9884 vs US$, or $1.0117
*Bond prices slip across the curve
By Claire Sibonney
TORONTO, Sept 15 (Reuters) - The Canadian dollar inched slightly higher against the U.S. dollar on Thursday, lagging a broader risk rally on signs that euro zone leaders are committed to saving Greece from default for now.
French and German leaders urged Greece's prime minister in a conference call late on Wednesday to meet the terms of its new bailout and said they were determined to keep the country in the euro zone, sending equities and commodity prices higher. [nLDE78D090]
"Most of the drivers would tell us that Canada should be a little bit stronger," said Camilla Sutton chief currency strategist at Scotia Capital. She pointed to the rally in European equities, stronger U.S. stock futures, a broadly weaker U.S. dollar, higher oil prices and interest rate spreads moving in Canada's favor.
"The overhang is I think is that we have a lot of risk in the system both from the European front but also from the slew of data we get today and from (Federal Reserve Chairman Ben)Bernanke having brief remarks and (European Central Bank President Jean-Claude) Trichet speaking later today."
At 8:06 a.m. (1206 GMT), the Canadian dollar stood at C$0.9884 to the U.S. dollar, or $1.0117 U.S. cents, up slightly from Wednesday's North American session close at C$0.9908 to the U.S. dollar, or $1.0093 U.S. cents.
Among the key data points on Thursday morning are Canadian manufacturing sales, U.S. inflation and manufacturing surveys.
Sutton noted that a positive print in domestic manufacturing sales would mark the first time in four months, and expected further upside in the currency in a daily range between C$0.9820-C$0.9920.
Canadian bond prices slipped across the curve.
The two-year bond CA2YT=RR was down 7 Canadian cents to yield 0.972 percent, while the 10-year bond CA10YT=RR lost 38 Canadian cents to yield 2.243 percent. (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)
