* C$ inches higher 97.35 U.S. cents
* Bonds follow U.S. Treasuries lower
By Jennifer Kwan
TORONTO, Sept 29 (Reuters) - Canada's dollar ticked higher against its U.S. counterpart on Wednesday, supported by a generally weaker greenback and steady oil prices, but was largely trapped in a tight trading range.
At 8:10 a.m. (1210 GMT), the Canadian dollar was at C$1.0272 to the U.S. dollar, or 97.35 U.S. cents, up slightly from Tuesday's finish at C$1.0302 to the U.S. dollar, or 97.07 U.S. cents.
Supporting the Canadian currency was a weaker U.S. dollar as investors prepared for the Federal Reserve to print more money to lift the weakening U.S. economy, while oil prices were also slightly firmer.
More broadly, market watchers say the underlying theme pervading markets is uncertainty about the strength of the global recovery in 2011.
Key areas of focus recently include any future quantitative easing by the U.S. Federal Reserve, even in a modest form, as well as concerns about euro zone banks and some countries' debts.
"The market is looking at, on the one hand, the situation in the U.S. and the Fed weighing its policy options. On the other hand, the situation in Europe is still not that appealing for investors," said Shaun Osborne, chief currency strategist at TD Securities.
"The stresses and strains are still quite evident in the euro zone," he added.
Osborne said the currency was stuck in a range of C$1.02 to the U.S. dollar and C$1.03.
Canadian bond prices fell along with U.S. Treasuries, which were softer ahead of an auction of 7-year notes but speculation of a fresh round of quantitative easing by the Federal Reserve helped limit losses.
The two-year bond was down 2 Canadian cents to yield 1.401 percent, while the 10-year bond slipped 10 Canadian cents to yield 2.753 percent. (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)