By Allison Bennett and Chris Fournier Feb. 10 (Bloomberg) -- Canada’s dollar fell from the highest level against its U.S. counterpart this week as doubt that Germany will help Greece mend its balance sheet reduced demand for currencies tied to economic growth. “Everyone is talking about Greece,” said Christian Dupont, a currency trader in Montreal at Desjardins Group, Canada’s biggest credit union. “That’s driving the show.” The Canadian currency dropped 0.2 percent to C$1.0673 per U.S. dollar at 9:13 a.m. in Toronto, from C$1.0656 yesterday. It earlier touched C$1.0627, the strongest level since Feb. 4. One Canadian dollar buys 93.63 U.S. cents. The currency will trade in a range of C$1.0550 to C$1.08 as traders await the outcome of a European Union summit tomorrow and the release of prepared testimony from Federal Reserve Chairman Ben S. Bernanke today, according to Dupont. Aid for Greece isn’t on the agenda for tomorrow’s EU summit in Brussels, a German government official told reporters in Berlin on condition of anonymity. While Greece will be discussed at lunch, there are unlikely to be any concrete steps announced for Greece, the German official said. Government bonds were little changed, with the yield on Canada’s 10-year security rising less than one basis point, or 0.01 percentage point, to 3.38 percent. The price of the 3.75 percent security maturing in June 2019 fell 2 cents to C$102.94. Canada posted a wider-than-expected merchandise trade deficit in December, led by automobiles, and the country’s first annual shortfall since 1975. Monthly Trade Deficit The monthly deficit totaled C$246 million ($231 million) after a revised C$201 million for November, Statistics Canada said today. The median forecast of 20 economists in a Bloomberg News survey was for a C$100 million deficit. Bernanke’s prepared testimony on the withdrawal of stimulus measures is due to be released at 10 a.m. He had been scheduled to testify at a House Financial Services Committee hearing today that was postponed because of snow in Washington. The MSCI World Index, a measure of stocks in 23 developed nations, increased 0.4 percent after a 0.8 percent gain yesterday. Standard & Poor’s 500 Index equity futures were little changed. Crude oil for March delivery fell 0.2 percent to $73.66 a barrel. To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Chris Fournier in Montreal at cfournier3@bloomberg.net

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