CANADA FX DEBT-C$ mildly weaker, focus on Carney testimony
* C$ down at C$0.9890 to the U.S. dollar, or $1.0111
* Bond prices flat to lower after three-session surge
* Canada's annual inflation rate eases in July
* Focus squarely on Carney, Flaherty testimony
By Ka Yan Ng and Trish Nixon
TORONTO, Aug 19 (Reuters) - Canada's dollar was slightly weaker against the U.S. currency on Friday morning, shrugging off July inflation data, as focus turned to testimony from Canadian policymakers facing questions about the domestic economy later in the session.
Canadian Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney will be grilled by a parliamentary committee on the possible fallout for the domestic economy from global economic turmoil. Flaherty is scheduled to speak at 9 a.m. (1300 GMT), followed an hour later by Carney. For more details, see [ID:nN1E77F1AL]
Their appearance in Ottawa marks the key event of the session for Canadian markets, as the data released by Statistics Canada suggested no inflation pressures, leaving the Bank of Canada some breathing room to leave rates unchanged for now. [ID:nN1E77I02W]
"Very neutral data. Pretty much in line with where the market had expected, and also falling back slightly from last month on some of the numbers, which I think just provides some flexibility to the Bank of Canada," said Camilla Sutton, chief currency strategist at Scotia Capital. Continued...