CANADA FX DEBT-C$ hits near 3-week high after Greek debt deal
* C$ at $0.9909 vs US$, or $1.0092 * Global lenders broker deal to cut Greek debt * U.S. durable goods not as weak as forecast * C$ expected to trade between C$0.9875 and C$0.9950 * Bond prices fall across curve By Solarina Ho TORONTO, Nov 27 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Tuesday after the International Monetary Fund (IMF) and Greece's euro zone neighbors brokered a deal to cut Greek debt. After 12 hours of talks, global lenders decided to cut Greek debt to 124 percent of gross domestic product by 2020, and promised further measures to lower it below 110 percent in 2022. "The agreement overnight has buoyed risk-sensitive currencies and we are seeing that flow into the Canadian dollar," said John Curran, senior vice president at CanadianForex. The currency also held onto its gains after U.S. data showed new orders for domestic durable goods were not as weak as analysts had forecast. At 8:47 a.m. (1347 GMT), the currency was trading at C$0.9909 to the U.S. dollar, or $1.0092, stronger than Monday's North American close of C$0.9938, or $1.0062. The currency at one point hit C$0.9906, its strongest level since Nov 11. Canada's dollar also showed broad strength, outperforming most other major currencies, including the euro, Japanese yen and fellow commodities-linked currencies, the Australian and New Zealand dollars. Curran said the currency would likely trade between C$0.9875 and C$0.9950 on Tuesday. He added that he expected some U.S. dollar buying interest around C$0.9880 to C$0.9900. "There's still longer term players looking to deleverage their long-Canada positions just due to the ongoing fact that our economic data has not been too great. And those are longer term factors. What's helping the Canadian dollar are short-term factors," said Curran. "If we continue to see the Canadian economy losing steam, you will see a selloff in the Canadian dollar. You have those two opposing forces at each other." Prices for Canadian government debt was weaker across the curve, with the two-year bond shedding 1.5 Canadian cents to yield 1.111 percent. The benchmark 10-year bond weakened 7 Canadian cents to yield 1.768 percent.
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