* C$ at C$0.9955 to the US$, or $1.0045
* 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, pulling back
from a 3-month high hit Friday, as Greek debt worries mounted
after ongoing talks with European policymakers to avoid a messy
default missed another deadline.
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.
"Canada did weaken off along with most of the other
currencies against the (U.S.) overnight, but the North American
session has been absolutely sideways," said Shane Enright,
executive director of foreign exchange sales at CIBC World
Enright added that with last week's disappointing Canadian
GDP and jobs numbers there was little domestic news that
supported increased buying of the Canadian dollar and it would
likely take a Greek debt deal to move the currency higher.
"If we're going to move this week in a major way it's going
to have to be news out of Europe that drives us," he said.
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.
The Canadian dollar finished at C$0.9955 to the
U.S., or $1.0045, down slightly from Friday's finish at C$0.9936
against the greenback, or $1.0064.
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 early on Monday, but slumped after the
latest setback by Greece sent the euro sliding, triggering
"The longer we wait and the closer we get to the next
deadline the more difficult things become," said Steve Butler,
director of foreign exchange trading at Scotia Capital.
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, with the two-year
bond up 3 Canadian cents to yield 1.023 percent. The
10-year bond rose 37 Canadian cents to yield 1.972