CANADA FX DEBT-C$ hits two-week low, hurt by Europe worries

* C$ ends at C$0.9788 vs US$, or $1.0217
    * Riskier assets sag as Europe worries persist
    * Bond prices climb across the curve

    By Andrea Hopkins
    TORONTO, Sept 24 (Reuters) - Canada's dollar ended weaker
against the U.S. currency on Monday, hurt by a drop in commodity
prices, as investors shifted focus from central bank stimulus
schemes to weak economic fundamentals and the euro zone's still
unresolved debt crisis.
    The Canadian currency fell overnight after data showed
German business sentiment dropped for a fifth straight month in
September to its lowest since early 2010, raising fears of
recession and underlining that a bold bond-buying plan laid out
by the European Central Bank is no economic elixir.
    Spain's troubles were also at the top of investors' minds,
with the government making slow progress towards asking for the
international bailout that markets are anticipating.
    The gloomy headlines weighed on stock markets and commodity
prices, riskier assets that often help set the direction for
Canada's currency. 
    "It's suffering along with all of the other general risk
proxies," said Adam Cole, global head of FX strategy at RBC
Capital Markets in London.
    Disappointing Canadian data has also prevented the currency
from making gains after touching a 13-month high on Sept. 14.
The tepid numbers included tame Canadian inflation for August
and a weak wholesale sales report for July, both released on
    "Some of the data we've had recently has been a bit softer
so it has taken away from the fairly decent Canadian dollar
rally of the last few weeks," said David Bradley, director of
foreign exchange trading at Scotiabank.
    The Canadian dollar ended the day at C$0.9788
against the U.S. dollar, or $1.0217, softer than Friday's North
American session close at C$0.9764, or $1.0242.
    The currency at one point hit C$0.9819, its weakest level
since Sept. 7.
    With little domestic data out on Monday, markets were
looking ahead to retail sales and monthly GDP later in the week.
    Canadian government bond prices advanced across the curve,
with the two-year bond up 3 Canadian cents to yield
1.121 percent, and the benchmark 10-year bond up 27
Canadian cents, yielding 1.821 percent.