CANADA FX DEBT-C$ ends weaker, hurt by U.S. fiscal worry
* Ends at C$0.9865 to US$, or $1.0137
* C$ weakens briefly after soft factory data
* Bond prices mixed
By Alastair Sharp
TORONTO, Dec 14 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Friday, as hopes faded that a U.S. budget deal will be brokered by the end of the year.
An impasse between Democrats and Republicans is raising the odds that Congress will fail to meet a year-end deadline to avert steep U.S. tax hikes and spending cuts.
Many economists believe that failure to reach a fiscal deal would push the United States - Canada's biggest trading partner - back into recession and hurt Canada's currency.
Surprisingly weak Canadian manufacturing data early in the session briefly weighed on the Canadian dollar, which was also hurt by the broadly cautious tone that hit other growth-oriented currencies and global stocks. Continued...