CANADA FX DEBT-C$ slips as world growth jitters mount

Tue Aug 16, 2011 9:47am EDT
 
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* C$ edges down to C$0.9825 to the U.S. dollar, or $1.0178

* Bond prices rise as stagnant German growth data weighs

* Canada factory sales plunge, Q2 growth to suffer

By Ka Yan Ng

TORONTO, Aug 16 (Reuters) - Canada's dollar was weaker against the U.S. dollar on Tuesday morning after disappointing domestic factory sales figures added to a world backdrop of slowing economic growth.

Worries about the global economy slowing more than expected were highlighted by data that showed stagnant growth in Europe's powerhouse, Germany, which knocked stocks lower and hit the euro. [MKTS/GLOB]

The German data sharpened market focus on Tuesday's meeting in Paris between French President Nicolas Sarkozy and German Chancellor Angela Merkel, with investors looking for any signs of new measures to contain the euro zone debt crisis.

Weaker prices for oil and other resources also pressured Canada's commodity-linked currency.

At 9:25 a.m. (1325 GMT), the Canadian currency CAD=D4 was at C$0.9825 to the U.S. dollar, or $1.0178, down from Monday's North American finish of C$0.9799 to the U.S. dollar, or $1.0205. The currency rose more than a penny in the previous session.   Continued...