* C$ flat at C$0.9981 vs US$, or $1.0019
* Bonds prices creep higher
By Claire Sibonney
TORONTO, Feb 24 The Canadian dollar was
little changed against the U.S. dollar on Friday as
recent optimism spurred by positive global economic data was
offset by unease about high oil prices and the implementation of
Greece's rescue deal.
A day after hitting a record high in euro terms, Brent crude
jumped above $124, raising worries a run of sharp price gains
could stymie the euro zone's growth prospects, making it harder
for governments to meet budget targets and pull the currency
bloc out of its debt crisis.
"At the end of the day the Canadian dollar is really an
afterthought in foreign exchange markets being pulled in both
directions," said Michael O'Neill, vice-president of foreign
exchange trading at RJOFX Canada.
"All the benefits of improving U.S. economic data and
rising oil prices are offset by selling of Canada against the
crosses," he added, noting profit-taking in the Canada/yen and
The euro extended a surge to 10-week highs against the U.S.
dollar in the wake of better-than-expected German data on
Thursday which led investors to close some bets on losses for
the single currency.
At 7:54 a.m. (1254 GMT), the Canadian dollar stood
at C$0.9981 to the U.S. dollar, or $1.0019, off slightly from
Thursday's North American session close at C$0.9976 against its
U.S. counterpart, or $1.0024.
O'Neill put Friday's range between C$0.9940-C$1.0010,
hovering either side of parity.
Encouraging U.S. jobs data on Thursday also helped fuel the
rally in risk assets, taking Wall Street near peaks not seen
since before the 2008 collapse of Lehman Brothers.
Investors will look to a Thomson Reuters/University of
Michigan Surveys of Consumers at 9:55 a.m. (1455 GMT) for
Markets were also gearing up for a second three-year
financing operation by the European Central Bank next week,
which is expected to provide nearly half a trillion euros of
cheap cash and ease concerns about bank funding.
The euro zone's debt problems are also likely to dominate a
two-day meeting of G20 finance ministers on the weekend with
euro zone countries pushing for their G20 partners to commit
more money to the IMF to help the currency bloc overcome its
Canadian bond prices crept higher across the curve.
The two-year bond was up 1 Canadian cent to yield
1.084 percent. The 10-year bond climbed 20 Canadian
cents to yield 2.030 percent.