* Euro rises on speculation Greece may receive debt aid soon
* Yen slips after rally on yuan speculation
* Canadian dollar falls sharply after Canada jobs data
(Adds detail, updates prices)
By Natsuko Waki
LONDON, April 9 (Reuters) - The euro rose broadly on Friday,
recovering from early losses, as speculation intensified Greece
may soon receive help in dealing with its huge public debt load.
The yen slipped broadly as investors trimmed bets on the
Japanese currency after a rally this week on chatter that China
could change its yuan policy in the near term.
European Union President Herman Van Rompuy told Le Monde
newspaper the EU was prepared to intervene over Greece should it
be required to. He also said a Eurogroup meeting in mid-April
would find a solution for any remaining Greek aid problems.
Expectations were growing that Greece will resort to a
lifeline from the European Union and the International Monetary
Fund to help repay its ballooning debts. The premium investors
pay to hold Greek debt rather than German bonds also narrowed.
"Hopes are about the best word you can sum it up with. We
know there is a bailout package there but we don't have the
details," said Simon Derrick, head of currency research at Bank
of New York Mellon.
"If there was a definite rescue package there will
definitely be a relief rally in the euro although the long-term
outlook is negative."
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For Insider on yuan revaluation:
http://link.reuters.com/xut96j
For graphic on Greek and euro zone economy
http://graphics.thomsonreuters.com/10/04/GR_ECON0410.gif
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By 1140 GMT, the euro was up 0.2 percent on the day at
$1.3388 <EUR=> and up half a percent at 125.45 yen <EURJPY=>.
The single currency is still down around 5-6 percent against
both currencies this year.
The euro also drew support after European Central Bank
President Jean-Claude Trichet on Thursday said a Greek default
was unlikely. He reiterated that view in an interview on Friday.
[].
But market participants said Trichet's attempts to soothe
concerns about Greece were doing little to improve underlying
sentiment on the euro, which hit a two-week low of $1.3278 on
Thursday and is on track to post a 1 percent weekly loss against
the dollar.
BNP Paribas analysts said a rise to $1.3430 would create a
selling opportunity, and that they expected the euro to revisit
a 10-month low around $1.3270 hit in March.
YUAN SPECULATION
The yen came under selling pressure as traders who reckoned
its rally earlier this week may have been overdone focused on
the possible measures the Bank of Japan could take to overcome
price falls.
A meeting between Japanese Prime Minister Yukio Hatoyama and
BOJ Governor Masaaki Shirakawa on Friday reminded the market
that the central bank will likely continue facing government
pressure to take further action to fight deflation.
[] []
The yen rallied on Thursday after the New York Times
reported on Thursday China is very close to announcing a shift
in its currency policy, including a "small but immediate"
revaluation of the yuan [].
The yen is seen benefiting from a stronger yuan as it is
used as a proxy for less flexible Asian currencies.
The Canadian dollar fell as low as C$1.0084 <CAD=D4>, down
0.5 percent on the day, after data showed Canada's economy added
a lower-than-expected 17,900 jobs in March [].
(Reporting by Natsuko Waki, editing by Nigel Stephenson)
