CANADA FX DEBT-C$ slips with investors nervous ahead of Fed

* C$ slips to C$0.9925 vs US$, or $1.0076
    * Bond prices climb across the curve
    * Fed's Bernanke not expected to offer stimulus details
    * Current account deficit widens more than expected

    By Solarina Ho
    TORONTO, Aug 30 (Reuters) - The Canadian dollar retreated
against the U.S. currency on Thursday, tracking losses in global
stock markets and commodity prices, as investors pared back
expectations that the Federal Reserve will signal a new round of
economic stimulus.
    Fed Chairman Ben Bernanke will be giving a much anticipated
speech at a meeting of central bankers in Jackson Hole, Wyoming,
on Friday, but expectations are low he will offer market-moving
news of a third round of economic stimulus. 
    Canadian and U.S. shares fell alongside other riskier assets
as investors closed out positions ahead of Bernanke's
    "There's just some risk-shedding ahead of the announcement
that Bernanke's going to do tomorrow," said John Curran, senior
vice president at CanadianForex.
    "I really don't think there's going to be any great
surprises. I don't think they're going to announce any grand
    Curran said the speech, a European Central Bank meeting next
week and the coming long weekend are all combining to prompt
investors to pull some risk off the table.
    The ECB is expected to unveil concrete plans to help crimp
crippling borrowing costs in Spain and Italy at a policy meeting
on Sept. 6. The euro zone has been trying to tackle the region's
three-year-old debt crisis.
     At 3:05 p.m. ET (1905 GMT), the Canadian dollar stood at
C$0.9925 versus the greenback, or $1.0076, down from Wednesday's
close at C$0.9895 against the U.S. unit, or $1.0106.
    The currency barely moved after a report showed Canada's
current account deficit widened more than expected in the second
quarter, mainly due to lower exports of energy and a higher
level of imports. 
    But the report served as a reminder that the Canadian
dollar's recent strength is mainly due to capital and not
trade-related flows, leaving it vulnerable to capital flight if
global worries re-emerge, CIBC World Markets' Emanuella Enenajor
wrote in a note.
    Canada's dollar weakened against most other major currencies
such as the euro. But it did firm to a 2-1/2 month high against
the Australian dollar, which was also hurt by falling
commodity prices.
    Also expected tomorrow are a laundry list of economic data
from the U.S. and second quarter GDP numbers for Canada, which
are projected to be soft. 
    Canadian bond prices crept up across the curve, with the
two-year bond up 2.5 Canadian cents to yield 1.128
percent and the benchmark 10-year bond up 36
Canadian cents to yield 1.762 percent.