CANADA FX DEBT-C$ slips after U.S. GDP data

Wed Jan 30, 2013 9:11am EST
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* C$ falls to C$1.0039 vs US$, or 99.61 U.S. cents

* Bond prices little changed across the curve

* U.S. Q4 GDP misses expectations

By Claire Sibonney

TORONTO, Jan 30 (Reuters) - The Canadian dollar eased slightly to a session low against its U.S. counterpart on Wednesday after data showed the U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession.

The currency hit C$1.0039 against the greenback, or 99.61 U.S. cents. It had traded at C$1.0029, or 99.71, immediately before the release.

"The net effect (of the U.S. GDP data) has been remarkably limited actually on currencies generally," said Adam Cole, global head of FX strategy at RBC Capital Markets in London.

"People are generally putting the softness to GDP down to temporary factors, in particular government spending, and therefore not reading a great deal into the fact that it had a minus number in front of it."

U.S. gross domestic product fell at a 0.1 percent annual rate after growing at a 3.1 percent clip in the third quarter, as businesses scaled back on restocking and government spending plunged.   Continued...