CANADA FX DEBT-C$ weakens on slowing Canadian economic growth data
* Canadian dollar at C$1.0847 or 92.19 U.S. cents * Bond prices up across the maturity curve By Leah Schnurr TORONTO, May 30 (Reuters) - The Canadian dollar weakened against the greenback on Friday after data showed the pace of domestic economic growth cooled more than expected in the first quarter. Gross domestic product expanded by an annualized 1.2 percent in the first three months of the year, shy of expectations for 1.8 percent. The Canadian dollar has gained modestly through May, though it has largely stayed within a slim trading range as investors have weighed generally improving data against a neutral stance from the Bank of Canada. For the markets, Friday's GDP report will be viewed through the lens of what it means for the Bank of Canada's meeting next week, which is likely to see the central bank stick to its course, said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. "Given what we've seen in the Canadian dollar over the past few weeks in terms of strengthening, it suggests the market was turning a little less dovish on the Canadian dollar and the Canadian outlook," said Moore. "This type of report suggest the Bank of Canada won't shift their tone," he added. The Canadian dollar was at C$1.0847 to the greenback, or 92.19 U.S. cents, weaker than Thursday's close of C$1.0836, or 92.28 U.S. cents. Canadian government bond yields edged lower though the benchmark 10-year yield stayed above the 11-month low it hit earlier this week. The 10-year was up 13 Canadian cents to yield 2.555 percent, while the two-year was up 1 Canadian cent to yield 1.050 percent. (Editing by W Simon)
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.