CANADA FX DEBT-C$ trades sideways after ECB talk

* C$ at C$1.0081 vs US$, or 99.20 U.S. cents
    * Bond prices retreat across the curve

    By Claire Sibonney
    TORONTO, July 27 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday amid quiet trade
and fresh doubts about whether the European Central Bank would
take bold action to tackle the region's sovereign debt crisis.
    European equities rose and peripheral bond yields fell on
growing expectations of ECB measures to bring down Spanish and
Italian borrowing costs, but concerns about possible German
opposition to such a move kept risk appetite in check.
    "In general commodity currencies are slightly better bid
this morning ... so the market is continuing to believe the ECB
is going to do what it takes, but I think there hasn't been much
follow through and I think the reason for that is they'd like to
see more action," said Blake Jespersen, managing director of
foreign exchange sales at BMO Capital Markets.
    Euro zone governments and the European Central Bank are
preparing to intervene on financial markets, French daily Le
Monde reported, citing unnamed sources. 
    The report came a day after ECB President Mario Draghi
boosted risk assets across the globe with his pledge do whatever
it takes within the bank's mandate to defend the single
    At 8:07 a.m. (1207 GMT), the Canadian dollar stood
at C$1.0081 versus the greenback, or 99.20 U.S. cents, up
slightly from Thursday's North American's session close at
C$1.0096 versus the U.S. dollar, or 99.05 U.S. cents.
    "It's still fairly rangebound, lighter volumes, and I think
the market in general is just waiting for more clarity from the
ECB in terms of what they have in mind to sustain the euro at
whatever cost," added Jespersen.
    He noted that trading was particularly light in London ahead
of the opening ceremonies for the Olympic Games later in the
    A reading of U.S. second quarter growth due at 8:30 a.m. is
expected to provide further direction for currency markets.
    Jespersen saw immediate Canadian dollar resistance around
C$1.0050 and support near C$1.0110-C$1.0120.
    Canadian bond prices moved lower across the curve  with the
two-year bond off 7 Canadian cents to yield 1.053
percent and the benchmark 10-year bond down 44
Canadian cents lower to yield 1.692 percent.