CANADA FX DEBT-C$ slides on weak data, souring outlook

Thu Aug 18, 2011 4:56pm EDT
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* C$ ends lower at C$0.9884 to the U.S. dollar, or $1.0117

* Touches lowest level since Aug. 11, pares losses

* Bond prices surge for third session on flight to safety

* Focus shifts to CPI, Canadian policy makers

* TD, CIBC downgrade Canadian dollar forecasts (Updates to close)

By Ka Yan Ng

TORONTO, Aug 18 (Reuters) - Canada's dollar fell hard against the U.S. currency on Thursday, weakening on worries over the European debt crisis and a raft of gloomy U.S. data that added to an already souring outlook for the world economy.

The nervousness, however, sent government of Canada bond prices surging for a third straight session in safe-haven gains as investors exited riskier stock markets.

The glum global outlook is one of the key points a parliamentary committee will examine on Friday when Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney will be grilled on the possible fallout for the domestic economy. [ID:nN1E77F1AL]   Continued...