CANADA FX DEBT-C$ falls as doubts on Fed boost greenback

* C$ falls to 97.13 U.S. cents

* Bond prices soften across curve

By Claire Sibonney

TORONTO, Oct 27 (Reuters) - The Canadian dollar slipped
further against the U.S. dollar on Wednesday as the greenback
rose broadly on speculation the U.S. Federal Reserve would take
a gradual approach to quantitative easing next week.

Doubts over how aggressively the Fed is going to be with
another round of asset-buying to stimulate a faltering recovery
also weighed on global equities and commodities. [MKTS/GLOB]

"I think the focus this morning is very much on QE2 and a
slightly scaled back expectation," said Camilla Sutton, chief
currency strategist at Scotia Capital.

The Wall Street Journal reported on Wednesday that the Fed
is likely to unveil next week an asset purchase program worth a
few hundred billion dollars over several months, and that
officials wanted to avoid a "shock and awe" style approach.
[ID:nTOE69Q02H]

"Leading into this too, in the last few trading sessions
we've seen that there's been some upward pressure on (U.S.)
inflation expectations through the bond market," added Sutton.
"When we combine all those things ... that's given the U.S.
dollar some strength and the other currencies are weakening on
the back of it."

At 8:00 a.m. (1200 GMT), the Canadian dollar CAD=D4 stood
at C$1.0296, or 97.13 U.S. cents, down from Tuesday's finish at
C$1.0242 to the U.S. dollar, or 97.64 U.S. cents.

Sutton said that the Canadian dollar is still stuck in its
range, very close to its average year to date level of
C$1.0345.

She expects today's range to hold between C$1.0225, an area
of recent congestion for the Canadian dollar, and C$1.0340,
near the 100-day and 200-day moving averages.

The market will also be watching U.S. durable goods and new
home sales data this morning.

Canadian government bond prices softened, tracking U.S.
Treasuries lower as traders trimmed bets on the size of
possible asset buying by the Fed. [US/]

The two-year bond CA2YT=RR fell 2 Canadian cents to yield
1.437 percent, while the 10-year bond CA10YT=RR was off 38
Canadian cents to yield 2.861 percent.

(Reporting by Claire Sibonney, Editing by Chizu Nomiyama)