* C$ rises to 97.08 U.S. cents
* Bonds dip ahead of U.S. data, firm equity futures
TORONTO, Sept 24 (Reuters) - Canada's dollar rose against the U.S. dollar as risk sentiment firmed with overnight European data and North American equity futures that signaled a higher start on Friday.
The Canadian dollar edged higher on rising risk appetites, reflected in firmer U.S. and Canadian equity index futures that pointed to a rise at the open.
The currency's rise comes after two straight sessions of weakness,
Key commodity prices, such as the price of oil, also were higher and supportive of the Canadian dollar, which often tracks resource prices because of Canada's commodity-based economy.
At 8 a.m. (1200 GMT), Canada's currencywas at C$1.0301 to the U.S. dollar, or 97.08 U.S. cents, up from C$1.0340 to the U.S. dollar, or 96.71 U.S. cents, at Thursday's close.
"There were steady offers in dollar/Canada overnight in conjunction with the improvement (of risk sentiment), most notably out of Europe with the German IFO, which was ahead of expectations," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
The Ifo German business climate survey helped ease some of the concerns over the global economy recovery that had been revived by data on Thursday showing new claims for U.S. employment benefits rose last week. [MKTS/GLOB]
Unconfirmed talk of Japan intervening in the market to weaken the yen for the second time this month created volatility overnight.
However, the Canadian currency was largely within the range covered in the past two weeks, mostly in the C$1.0250-C$1.0350 area with a few forays to try and break the range on either side.
Improved confidence in the global economy put some pressure on Canadian government bonds, cutting into gains made recently.
The two-year government of Canada bond edged down 1 Canadian cent to yield 1.420 percent, while the 10-year bond slipped 14 Canadian cents to yield 2.853 percent.
With no Canadian data is on tap on Friday, market watchers may be influenced by U.S. data, which is expected to show durable goods orders for August fell 1.0 percent while new home sales at are expected to rise slightly last month.(Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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