* C$ at C$0.9965 vs US$, or $1.0035
* Supported by optimism Greece will receive aid funding
* Moody's downgrade of France hurts riskier assets
* Canadian wholesale trade unexpectedly falls in Sept
* Oct U.S. housing starts rise to highest rate in more than
By Solarina Ho
TORONTO, Nov 20 The Canadian dollar was little
changed against the U.S. dollar on Tuesday, supported by
cautious optimism that debt-ridden Greece was on track to
receive aid funding, with North American economic data having
The euro was steady as the Greece news offset Moody's
downgrade of France's prized triple-A rating on Monday. The
ratings agency cited an uncertain fiscal outlook and
deteriorating economy for the cut.
Finance ministers meet on Tuesday to discuss unlocking
delayed aid payments to Greece, a day after Athens passed laws
to enforce budget targets and appease foreign lenders.
"The bigger news will be if they don't get their money.
You'll see a much a stronger market reaction than if they do get
their money because the market's probably operating on the
assumption that they will," said Matt Perrier, director of
foreign exchange sales at BMO Capital Markets.
"It's a relatively tight range - 20 points - basically in
consolidation mode. The market seems for the time being
shrugging off the French downgrade."
At 8:34 a.m. (1334 GMT), the Canadian dollar was
trading at C$0.9965 to the U.S. dollar, or $1.0035, nearly
unchanged from Monday's North American finish of C$0.9966, or
It's performance was mixed against other major currencies,
outperforming its commodities-linked counterparts like the
Australian dollar, but underperforming the euro
Canada's dollar was likely to trade between C$0.9935 and
C$0.9995 and test the stronger end of the range, Perrier said.
He saw the next Canadian dollar resistance level around C$0.9890
The currency showed little reaction to news Canadian
wholesale trade unexpectedly fell 1.4 percent in September from
August, while U.S. housing starts rose to their highest rate in
more than four years in October.
"We've seen some bigger things overnight that haven't moved
the market, so we'll pay attention to what we've been paying
attention to for the last little while -- equities and risk
appetite," said Perrier.
Federal Reserve Chairman Ben Bernanke is set to speak later
today, which could turn market focus toward Fed policy.
Perrier said Bernanke always has the potential to be market
moving, but was not expected to make any new announcements.
Prices for Canadian government debt were lower across the
curve, with the two-year bond off half a Canadian
cent to yield 1.099 percent and the benchmark 10-year bond
unchanged to yield 1.737 percent.