CANADA FX DEBT-C$ slips as investors watch earnings and U.S. debt battle
* C$ weaker at C$0.9853 vs US$, or $1.0149 * Bond prices rise across the curve By Claire Sibonney TORONTO, Jan 15 (Reuters) - The Canadian dollar slipped against the U.S. currency on Tuesday, tracking weakness in U.S. equities over worries about the looming battle in Washington over the borrowing limit and expectations for a dull earnings season. World equity markets also stalled near 18-month highs after President Barack Obama on Monday rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit. Adam Cole, global head of FX strategy at RBC Capital Markets in London said the Canadian dollar "is a bit softer on the day on the back of a slightly negative tone for risky assets generally." He said that direction from global equities "will be put to the test more harshly" on Wednesday when there will be a spate of Q4 earnings reports. In what is expected to be a lackluster earnings season, reports are due this week from Goldman Sachs, Bank of America, Intel and General Electric, among other companies. Third-quarter reports ended with a gain of just 0.1 percent, the worst for an S&P 500 profit period in three years, according to Thomson Reuters data. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.9 percent from a year ago, Thomson Reuters data showed. At 9:18 a.m. (1418 GMT), the Canadian dollar was trading around C$0.9853 versus the U.S. dollar, or $1.0149, weaker than Monday's North American session close at C$0.9838 versus the greenback, or $1.0165. The Canadian dollar trimmed some losses on Monday after data showed U.S. retail sales rose more than expected in December. Still, the currency continued to trade in a narrow range on Tuesday between C$0.9833-67. RBC noted near-term U.S. dollar resistance around C$0.9934 and support at C$0.9826. "It's still stuck in the C$0.98 to parity range as we have been for so long now," added Cole. Canadian bond prices edged higher across the curve, following U.S. Treasuries up. The two-year bond was up 3 Canadian cent to yield 1.180 percent, while the benchmark 10-year bond climbed 26 Canadian cents to yield 1.910 percent.