CANADA FX DEBT-C$ drifts lower, tracking euro data, U.S. stocks
* C$ slips to C$0.9857 vs US$, or $1.0145 * Bond prices climb across the curve By Claire Sibonney TORONTO, Jan 14 (Reuters) - The Canadian dollar softened against its U.S. counterpart on Monday after disappointing euro zone factory data and weaker U.S. equities dented confidence. Output at euro zone factories fell for the third straight month in November and against expectations of a rise, but the data included some evidence to back hopes that the bloc's recession may now have bottomed. "The Canadian dollar lost ground because the U.S. dollar spiked on worse than expected European data ... that's when the U.S. dollar started popping higher," said Michael O'Neill, vice president of FX trading at Jitneytrade. Meanwhile, U.S. stock index futures fell on Monday as shares of Apple were hit by demand concerns, while the corporate earnings season was set to pick up this week. The currency was expected to take further direction from U.S. earnings as the season picks up this week, with reports due from companies including Goldman Sachs, Bank of America , Intel and General Electric. Overall earnings are expected to grow by just 1.9 percent in this reporting period, according to Thomson Reuters data. Thirty-eight S&P 500 companies are due to report results this week. At 9:11 a.m. (1411 GMT), the Canadian dollar stood at C$0.9857 versus the greenback, or $1.0145, slightly weaker than Friday's close at C$0.9844, or $1.0158. The currency traded in a narrow band between C$0.9832-65. "At the end of the day all you're seeing is a bunch of noise in a tight range," added O'Neill. He pointed to Canadian-dollar support around C$0.9880-90. Canadian bond prices climbed across the curve. The two-year bond was up 2 Canadian cent to yield 1.183 percent, while the benchmark 10-year bond gained 10 Canadian cents to yield 1.930 percent.