* C$ ticks higher at C$0.9959 vs US$, or $1.0041
* Currency supported by some hope central banks will act
* Bond prices flat to higher across the curve
By Jennifer Kwan
TORONTO, Aug 8 (Reuters) - Canada's dollar edged higher
against its U.S. counterpart on Wednesday, supported by stronger
oil prices and expectations from some investors that central
banks around the world will step in to prop up their economies.
"The bottom line here is that the Canadian dollar is being
supported by higher oil prices and a somewhat stronger risk
appetite," said Marc Chandler, global head of currency strategy
at Brown Brothers Harriman.
"The belief is that many of the central banks will take
action to address either the financial crisis and, or weak
economies," he said. "I don't just mean the Federal Reserve, I
mean the ECB (European Central Bank) and I also mean China and I
also mean, possibly, the UK."
The Bank of England on Wednesday gave no hint of future
action in the UK despite slashing its growth forecast.
At 10:30 a.m. (1430 GMT), Canada's dollar was at C$0.9959
versus the U.S. currency, or $1.0041, slightly higher f rom
Tuesday's close at C$0.9975 against the greenback, or $1.0025.
Despite this, broader market action was mixed. A three-day
rally on world equity markets ended on Wednesday and the euro
fell, even as oil prices and gold edged higher.
As well, data showed German imports fell sharply for the
second time in three months in June and exports also dropped,
data showed on Wednesday, adding to signs the single currency
bloc's crisis is beginning to hurt Europe's largest economy.
"Markets are somewhat mixed to start the morning," said
Blake Jespersen, managing director, foreign exchange sales at
BMO Capital Markets. "It's a very quiet summer market."
Chandler said Canadian dollar resistance is seen holding at
C$0.9950 against the U.S. currency, or $1.0050.
The Canadian dollar was up against other commodity-related
currencies such as the Australian and New Zealand dollars, but
lagged the sterling and Japanese yen.
Canadian bond prices were flat to higher across the board.
The two-year bond was unchanged to yield 1.171
percent, and the benchmark 10-year bond edged up 16
Canadian cents to yield 1.823 percent.