CANADA FX DEBT-C$ slips as weak earnings weigh on sentiment

* C$ at C$0.9945 to the U.S. dollar, or $1.0055
    * Traders brush off in-line U.S. GDP reading

    By Alastair Sharp
    TORONTO, Oct 26 (Reuters) - The Canadian dollar edged lower
against the U.S. currency on Friday as weak corporate earnings
weighed on the market and traders largely brushed off a solid
reading of economic growth in the United States, Canada's
largest trading partner.
    The currency was hurt as disappointing results from
technology giant Apple Inc and a net loss from Internet
retailer Inc dampened market sentiment.
    Data showed growth U.S. gross domestic product picked up to
an annualized 2 percent in the third quarter as a late burst in
consumer spending offset the first cutbacks in investment in
more than a year by cautious businesses. 
    "A better print (on U.S. GDP) seemed to be expected...but
moreover people are just expecting earnings season to continue
to be poor, and that's going to weigh," said John Curran, senior
vice president at CanadianForex.
    At 9:25 a.m. (1325 GMT) the Canadian dollar was at
C$0.9945 to the greenback, or $1.0055, compared with C$0.9939,
or $1.0061, at Thursday's North American close. It's on track to
weaken by 0.3 percent on the week, after a sharp depreciation
the week before. 
    Data showing Spanish unemployment hit a record 25 percent in
the third quarter added to gloom about global growth, which can
have a pronounced effect on the commodity-linked currency.
    A poor showing from U.S. GDP data could have pushed the
Canadian dollar through parity for the first time since August,
though several moving averages and other technical resistance
levels make that more difficult.
    "Ultimately, there's a fair bit of congestion in terms of
technical levels to get through," said Jack Spitz, managing
director of foreign exchange at National Bank Financial.
    Highlighting the move into safer assets, prices for Canadian
government debt rose across the curve.
    The two-year bond was up 3 Canadian cents to
yield 1.134 percent, while the benchmark 10-year bond
 rose 33 Canadian cents to yield 1.863 percent.