CANADA FX DEBT-C$ rises, bonds fall, as CPI spurs rate hike talk
* Canada March inflation soars above target range
* Odds for rate rises from July onward gain
* C$ firms to one week high at $1.0443
* Bonds slide across the curve
By Ka Yan Ng
TORONTO, April 19 (Reuters) - The Canadian dollar firmed to a one-week high on Tuesday after data showed Canada's annual inflation rate in March jumped to its highest level since September 2008, ratcheting up pressure on the Bank of Canada to resume raising interest rates soon.
On a year over year basis, the inflation rate in March shot up to 3.3 percent from 2.2 percent in February, well above market expectations, and above the Bank of Canada's target range. The core rate remained tame, but was still higher than market forecasts. [ID:nN19160402]
"It was strong across the board, even the seasonally-adjusted numbers made significant month-over-month gains," said Camilla Sutton, chief currency strategist, at Scotia Capital.
"Inflationary pressure has begun to enter Canada and this will significantly change the market's expectation of what the Bank of Canada will do in terms of interest rates." Continued...