CANADA FX DEBT-C$ inches higher; Carney reassures markets
* C$ edges up to C$0.9852 to the U.S. dollar, or $1.0150
* Bond prices lower after three-session surge
* Canada's annual inflation rate eases in July
* Carney, Flaherty soothe on world economy, ready to act (Adds details)
By Ka Yan Ng
TORONTO, Aug 19 (Reuters) - Canada's dollar was firmer against the U.S. currency at midday on Friday, reassured by testimony from top Canadian policymakers that while risks remain in the global economy, Ottawa is ready to intervene in case of major world turmoil.
In testimony before a parliamentary committee on Friday, Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty both highlighted the risks posed by Europe's stubborn debt crisis and the slow U.S. recovery from recession.
But neither forecast a recession in either area, although Carney admitted that Canada's economy might contract in the second quarter. [ID:nN1E77I0KX] [ID:nN1E77I0L1]
"There wasn't anything too bombastic out of Governor Carney to convince the dollar to move in any sustained manner as a result of his testimony," said David Tulk, chief Canada macro strategist at TD Securities. Continued...