CANADA FX DEBT-C$ turns lower, bonds up, on U.S. data
* C$ sags to C$1.0973, or 91.13 U.S. cents
* Bond prices rise with U.S. market on U.S. data
* U.S. consumer confidence at lowest level since March
* Canadian manufacturing shipments jump 1.9 pct (Adds details, updates prices)
By Ka Yan Ng
TORONTO, Aug 14 (Reuters) - The Canadian dollar turned lower versus the U.S. currency on Friday, pressured by renewed concerns about the economic recovery arising from worsening U.S. consumer confidence.
The currency's fall centered on the Reuters/University of Michigan preliminary August consumer sentiment survey that dropped to 63.2 from 66.0 in July, its lowest level since March and well below median expectations of a reading of 68.5. [ID:nN14294408]
"What it has introduced into the market is a bit more caution in terms of just how quickly the U.S. economy is going to rebound," said Paul Ferley, assistant chief economist at Royal Bank of Canada, adding that the confidence report was one of several disappointing data points in recent day.
Earlier this week, U.S. retail sales unexpectedly slipped and there were more indicators that the weak U.S. labor market was struggling to stabilize.
At 1:15 p.m. (1715 GMT), the Canadian currency was at C$1.0973 to the U.S. dollar, or 91.13 U.S. cents, down from C$1.0890 to the U.S. dollar, or 91.83 U.S. cents, at Thursday's close.
The confidence figures also hit the Canadian dollar's correlated markets of oil and stock markets, adding further pressure to the commodity-linked currency.
The price of oil, a key Canadian export, dropped below $68 a barrel, while North American equity markets slumped.
Early in the session, data showing mild U.S. inflation [ID:nN13244265] and a jump in Canadian manufacturing shipments [ID:nN14293720] had helped the Canadian dollar edge higher.
Canadian bond prices were higher across the curve, following the U.S. Treasury market, which rose on the mild consumer inflation data, which led the market to believe that the U.S. Federal Reserve will keep interest rates low for some time.
Gains extended with the poor consumer confidence data and as investors sought the relative safety of government bonds as they exited equities.
The two-year Canadian bond climbed 6 Canadian cents to C$99.39 to yield 1.307 percent, while the 10-year bond rose 33 Canadian cents to C$102.33 to yield 3.466 percent.
The 30-year bond increased 65 Canadian cents to C$117.75 to yield 3.942 percent. In the United States, the 30-year bond yielded 4.402 percent.
© Thomson Reuters 2017 All rights reserved.