CANADA FX DEBT-C$ firms, focus on central banks
* C$ at C$1.0203 versus US$, or 98.01 U.S. cents * All eyes on central banks * Bond prices mostly lower By Allison Martell TORONTO, June 19 (Reuters) - The Canadian dollar strengthened on Tuesday as concerns about the impact of the euro zone debt crisis on global growth encouraged talk of a policy response by major central banks. Blake Jespersen, managing director of foreign exchange sales at BMO Capital Markets, said volume was low, with investors in a wait-and-see mode given the U.S. Federal Reserve's two-day meeting. But he noted that the Canadian dollar was stronger, mirroring U.S. equity market futures. "In general, I think it's the expectation of continued stimulus by the Fed. Clearly they see that there's some headwinds in the global economy," he said. U.S. Federal Reserve policymakers are meeting on Tuesday and Wednesday. The euro rose against the dollar and shares gained on Tuesday as investors focused on whether the Federal Reserve will unveil more stimulus to support a flagging recovery. At the same time, a surprise fall in British inflation raised hopes that the Bank of England will take steps to support the UK's economy. At about 9:00 a.m. (1300 GMT) the Canadian dollar was at C$1.0203 versus the U.S. dollar, or 98.01 U.S. cents, compared with Monday's close at C$1.0241, or 97.65 U.S. cents. Canadian bond prices were mostly lower across the curve. Canada's two-year bond fell 11 Canadian cents to yield 1.032 percent, while the benchmark 10-year bond fell 32 Canadian cents to yield 1.749 percent.
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