* C$ at C$0.9985 to the US$, or US$1.0015
* Greek debt worries weigh on market
* Bond prices mostly higher
By Jon Cook
TORONTO, Feb 6 The Canadian dollar
weakened against its U.S. counterpart on Monday, falling in
tandem with the euro, as worries about Greece's unresolved debt
deal took the lustre off Friday's confidence-boosting U.S. jobs
A European Commission spokesman said Greece had already gone
beyond the deadline for finalising talks on the second financing
package from the euro zone and the International Monetary Fund,
and Athens needed urgently to take decisions.
"It's got the market's full attention at the moment," said
Steve Butler, director of foreign exchange trading at Scotia
Capital. "The longer we wait and the closer we get to the next
deadline the more difficult things become."
Greece's coalition members must agree to painful terms of a
new bailout worth 130 billion euros ($170.6 billion) before euro
zone finance ministers next meet. Failure to reach a deal would
leave the prospect of an unmanaged Greek debt default when bond
repayments fall due in March.
At 9:18 a.m. (1418 GMT), the Canadian dollar was at
C$0.9985 to the U.S., or US$1.0015, down nearly half a cent from
where it finished on Friday at C$0.9936 against the greenback,
On Friday, Canada's currency surged to C$0.9928, its
strongest level since Oct. 31, after data showed the American
economy added 243,000 jobs, the most since last April.
The currency firmed higher early on Monday, but slumped
after the latest setback by Greece as the euro hit a low of
$1.3030 on trading platform EBS after stop loss orders were
tripped below $1.3050.
"Everything was looking quite rosy and now it looks like
we're on the defensive this morning as we await some sort of
resolution," said Butler.
In the near term, Butler saw the Canadian dollar hovering
between its 200-day moving average at about C$0.9960 and
Canadian bond prices were mostly higher across the curve
with the two-year bond up 2 Canadian cents to yield
1.028 percent. The 10-year bond rose 22 Canadian
cents to yield 1.988 percent.