April 17, 2009 / 11:56 AM / 11 years ago

CANADA FX DEBT-C$ a touch lower after Canadian inflation data

 * Annual Inflation eases in March, core higher
 * Bond prices flat across the curve
 By Frank Pingue
 TORONTO, April 17 (Reuters) - The Canadian dollar eased
slightly versus the U.S. dollar on Friday as domestic inflation
data did little to change expectations that the Bank of Canada
could soon take additional measures beyond interest rate cuts
to stimulate Canada's sagging economy.
 The data showed Canada's annual inflation rate slowed to
1.2 percent in March from 1.4 percent in February, but the core
rate closely watched by the central bank unexpectedly rose to 2
percent. [ID:nN17500487]
 At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.2110
to the U.S. dollar, or 82.58 U .S. cents, down from C$1.2095 to
the U.S. dollar, or 82.68 U.S. cents, right before the data.
 It also remained down from C$1.2096 to the U.S. dollar, or
82.67 U.S. cents, at Thursday's close.
 The Bank of Canada will announce its interest rate decision
on April 21 and most primary dealers expect it to hold the key
rate steady at 0.50 percent and will watch for news of central
bank quantitative or credit easing measures. [ID:nTOR004440]
 "Whatever the Bank of Canada was going to do would've been
largely cast in stone for next week and today's numbers are not
much of a factor," said Mark Chandler, fixed income strategist
at RBC Capital Markets.
 Chandler said the Bank of Canada is likely more focused on
inflation expectations rather that current inflation figures.
 Domestic bond prices were mixed across the curve and
sticking close to the break-even level.
 (Reporting by Frank Pingue)

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