CANADA FX DEBT-C$ slips after 4 days of gains, shrugs off GDP

Fri Mar 2, 2012 9:27am EST
 
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* C$0.9870 vs the US$, or $1.0132

* Currency shrugs off GDP data

* Bond prices rise across the curve

By Jennifer Kwan

TORONTO, March 2 (Reuters) - The Canadian dollar retreated against its U.S. counterpart on Friday after a string of gains this week as currency traders largely shrugged off muted domestic fourth-quarter growth data.

Canadian economic growth slowed to an annualized 1.8 percent in the fourth quarter of 2011 from a sharply upwardly revised 4.2 percent in the third period, as positive temporary factors faded and government stimulus continued to wind down.

The 1.8 percent real growth rate matched forecasts in a Reuters survey but fell short of the 2.0 percent pace that the Bank of Canada predicted in its January Monetary Policy Report. U.S. growth was 3.0 percent in the fourth quarter.

"It's pretty much expected and overall growth is still fairly modest. This is a little bit stale, dated in the sense that it's backwards looking," said Camilla Sutton, chief currency strategist at Scotia Capital.   Continued...