* C$ sticks in tight range after CPI data
* Inflation rate turns negative in June
* Bond prices higher across the curve
By Frank Pingue
TORONTO, July 17 (Reuters) - Canada’s currency was flat versus the U.S. dollar on Friday as domestic inflation data came in as expected while nagging concerns over the global economic outlook kept it from adding to recent gains.
The Canadian dollar barely budged after data showed the annual inflation rate turned negative in June for the first time since November 1994 at a pace that was right in line with forecasts in a Reuters survey of analysts. [ID:nN17405438]
“I don’t think there is any surprise that’s come out of this so I wouldn’t imagine that financial markets will be all that aggressive in their response,” said Eric Lascelles, chief economics and rates strategist at TD Securities.
The Canadian dollar dipped to C$1.1181 to the U.S. dollar, or 89.44 U.S. cents, immediately after the 7:00 a.m. (1100 GMT) inflation report from a pre-data level of C$1.1178 to the U.S. dollar, or 89.46 U.S. cents.
By 7:55 a.m. the Canadian dollar was at C$1.1180 to the U.S. dollar, or 89.45 U.S. cents, down from C$1.1172 to the U.S. dollar, or 89.51 U.S. cents, at Thursday’s close.
The Canadian dollar had been on a charge earlier this week, at one point up 4.8 percent at its highest level in more than a month, before easing slightly in Thursday’s session.
Nagging concerns about the pace of a rebound in the global economy forced the Canadian dollar to relinquish some of its gains as demand for key Canadian commodities is closely linked to the health of the global economy.
Traders may also be avoiding major commitments in the lead up to Tuesday’s Bank of Canada rate announcement and Thursday’s Monetary Policy Report, when a forecast of a slightly less dismal economy could surface. [ID:nN15348944]
Domestic bond prices were up across the curve, underpinned by continued safe-haven demand as investors fretted about the impact of the possible bankruptcy of lender CIT Group (CIT.N). (Editing by Jeffrey Hodgson)