* C$ sags to $0.9875 to the U.S. dollar, or $1.0127
* Bond prices surge for third straight session
By Ka Yan Ng
TORONTO, Aug 18 Canada's dollar was weaker in
choppy trading on Thursday morning after a raft of U.S. and
Canadian data did little to offset an already glum economic
The nervousness, however, sent government of Canada bond
prices surging for a third straight session.
The currency fell to a session low at C$0.9880 to the U.S.
dollar, or $1.0121, after U.S. jobless claims rose in the
latest week and U.S. consumer prices rose faster than expected
The Canadian dollar was also weighed by persistent unease
about the sluggish global recovery, which was a chief factor
that sent European shares lower. Cuts in global gross domestic
product forecasts from big banks, as well as weak British
retail sales data fanned growth concerns. [MKTS/GLOB]
The price of oil was also down on the day. Oil prices often
influence the direction of Canada's commodity-linked currency.
"The first round of data was very uninspiring," said John
Curran, senior vice president at CanadianForex. "Realistically,
the major number there was the unemployment claims. CPI no one
is going to care about until mid-2013."
At 9:12 a.m. (1412 GMT), the Canadian currency CAD=D4 was
at C$0.9875 to the U.S. dollar, or $1.0127, down from C$0.9797
to the U.S. dollar, or $1.0207, at Wednesday's North American
Canada's two-year bond CA2YT=RR jumped 20 Canadian cents
to yield 0.881 percent, while the 10-year bond CA10YT=RR
advanced 65 Canadian cents to yield 2.319 percent.
Curran said there could be "some fireworks" after data at
midmorning, which includes existing home sales for July and the
Philadelphia Fed's business activity index for August. Both are
due at 10 a.m. (1600 GMT).
Investors were unruffled by Canada's economic data released
on Thursday, which showed a rise in July's leading indicator, a
predictor of economic trends, while June wholesale trade also
( Reporting by Ka Yan Ng, Editing by W Simon )