CANADA FX DEBT-C$ firms, focus on central banks

* C$ at C$1.0203 versus US$, or 98.01 U.S. cents
    * All eyes on central banks
    * Bond prices mostly lower

    By Allison Martell
    TORONTO, June 19 (Reuters) - The Canadian dollar
strengthened on Tuesday as concerns about the impact of the euro
zone debt crisis on global growth encouraged talk of a policy
response by major central banks.
    Blake Jespersen, managing director of foreign exchange sales
at BMO Capital Markets, said volume was low, with investors in a
wait-and-see mode given the U.S. Federal Reserve's two-day
meeting. But he noted that the Canadian dollar was stronger,
mirroring U.S. equity market futures. 
    "In general, I think it's the expectation of continued
stimulus by the Fed. Clearly they see that there's some
headwinds in the global economy," he said.
    U.S. Federal Reserve policymakers are meeting on Tuesday and
Wednesday. The euro rose against the dollar and shares gained on
Tuesday as investors focused on whether the Federal Reserve will
unveil more stimulus to support a flagging recovery. 
    At the same time, a surprise fall in British inflation
raised hopes that the Bank of England will take steps to support
the UK's economy. 
    At about 9:00 a.m. (1300 GMT) the Canadian dollar was at
C$1.0203 versus the U.S. dollar, or 98.01 U.S. cents, compared
with Monday's close at C$1.0241, or 97.65 U.S. cents. 
    Canadian bond prices were mostly lower across the curve.
Canada's two-year bond fell 11 Canadian cents to
yield 1.032 percent, while the benchmark 10-year bond
 fell 32 Canadian cents to yield 1.749 percent.