CANADA FX DEBT-C$ slips on Japan growth, bonds up, eye on stocks
* C$ slips to 95.94 U.S. cents
* Bonds rise on global economic uncertainty
TORONTO, Aug 16 (Reuters) - The Canadian dollar fell against the U.S. currency on Monday, grinding lower after weak Japanese growth data added to mounting concerns about the fragile world recovery.
The weaker-than-expected Japanese second-quarter economic data caught the market's attention, pushing the safe haven assets higher and prompting expectations of a soft start to U.S. equity markets. [ID:nTOE67901S] [MKTS/GLOB]
At 8:05 a.m. (1205 GMT), the Canadian dollar CAD=D4 was at C$1.0423 to the U.S. dollar, or 95.94 U.S. cents, down from C$1.0415 to the U.S. dollar, or 96.02 U.S. cents, at Friday's close.
"All in all, markets are fairly mixed as we head into the open," said Camilla Sutton, currency strategist at Scotia Capital.
"I think equities will be a big driver today. For Canada, it will certainly be the expectation for global growth going forward."
There are no domestic data on Monday, but a few U.S. reports may help further shape opinion on the health of Canada's biggest trading partner.
Investors will eye the New York Federal Reserve Empire State Manufacturing Survey for August, as well as the National Association of Home Builders/Wells Fargo August housing market index.
Canadian government bonds were up, but mostly underperforming U.S. Treasuries, as the global economy showed new signs of faltering.
The two-year bond CA2YT=RR gained 5 Canadian cents to yield 1.35 percent, while the 10-year bond CA10YT=RR was up 30 Canadian cents to yield 2.949 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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