* C$ slips to C$0.9923 vs US$, or $1.0078
* 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 on global
stock markets and in commodity prices as investors pared back
expectations the U.S. Federal Reserve will signal a new round of
economic stimulus.
Fed Chairman Ben Bernanke will give 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 risk assets as
investors closed out positions ahead of Bernanke's
speech.
"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
scheme."
Curran said the speech, a European Central Bank meeting next
week, and the coming long weekend in North America all combined
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 in another attempt to tackle the euro zone's
three-year-old debt crisis.
The Canadian dollar finished the session at C$0.9923 versus
the greenback, or $1.0078, down from Wednesday's close of
C$0.9895, or $1.0106.
CURRENT ACCOUNT WIDENS
The currency barely moved after a report showed Canada's
current account deficit grew more than expected in the second
quarter, hit by lower energy exports 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 firmed to a 2-1/2 month high against
the Australian dollar, which was also hurt by falling
commodity prices.
As well as Bernanke's speech, Friday will bring a slew of
U.S. economic data and second quarter GDP numbers for Canada,
which are projected to be soft.
Canadian bond prices crept up across the curve on Thursday,
with the two-year bond up 3 Canadian cents to yield
1.125 percent and the benchmark 10-year bond up 34
Canadian cents to yield 1.764 percent.