CANADA FX DEBT-C$ steady ahead of U.S. Fed, ECB

* C$ at C$1.0017 vs US$, or 99.83 U.S. cents
    * Earlier, C$ touches C$1.0003 or 99.97 U.S. cents
    * Bond prices slip across the curve

    By Jennifer Kwan
    TORONTO, Aug 1 (Reuters) - The Canadian dollar held on to
gains against its U.S. counterpart on Wednesday as investors
braced for any soothing words from the U.S. Federal Reserve and
the European Central Bank they will take action to prop up their
    The U.S. central bank is likely to show on Wednesday that it
is ready to act to support a weakening U.S. economy but stop
short of aggressive measures for now. 
    "I think the market is just consolidating ahead of the FOMC
announcement this afternoon. The U.S. dollar is generally softer
and risk is relatively well bid heading into the announcement on
the hope that the Fed delivers some sort of additional easing
measures," said Matt Perrier, a director of foreign exchange
sales at BMO Capital Markets.
    At around 7:40 a.m. (1140 GMT), the Canadian dollar 
was at C$1.0017 against the greenback, or 99.83 U.S. cents, a
little higher than Tuesday's North American finish at C$1.0029
against the greenback, or 99.71 U.S. cents. 
    The currency added roughly 1 percent for July.
    Investors are also focused on the ECB's Thursday meeting to
see how it plans to make good on promises by its president,
Mario Draghi, to preserve the euro. 
    Canadian bond prices slipped across the curve with the
two-year bond off 1 Canadian cent to yield 1.081
percent, and the benchmark 10-year bond down by 12
Canadian cents to yield 1.689 percent.