* C$ ends at C$0.9838 vs US$, or $1.0165
* Bond prices little changed across the curve
By Claire Sibonney
TORONTO, Jan 14 (Reuters) - The Canadian dollar recovered
from an early slide against its U.S. counterpart on Monday to
end little changed as it struggled to find direction from mixed
market signals.
U.S. stocks slid as concerns about demand for Apple Inc
products prompted investors to brace for earnings
disappointments, denting risk appetite.
Meanwhile, the euro - another barometer of risk sentiment -
climbed to an 11-month high versus the U.S. dollar as investors
pared expectations of monetary easing from the European Central
Bank and the outlook improved for Spain, the region's fourth
largest economy.
Against the Canadian dollar, the euro hit a two-week high.
.
There was little North American data to drive direction.
A Bank of Canada report that showed Canadian businesses saw
less pressure on their production capacity in the fourth quarter
and were concerned about demand over the next year boosted
confidence slightly.
"It may have provided just a very modest bid, given that it
was slightly above" expectations, said Mazen Issa, Canada macro
strategist at TD Securities. "The initial reaction was more
positive than expected for currency markets, but by and large
the move was small."
The Canadian dollar ended the North American
session at C$0.9838 versus the greenback, or $1.0165, slightly
stronger than Friday's close at C$0.9844, or $1.0158. The
currency traded in a narrow band between C$0.9832-66.
"At the end of the day all you're seeing is a bunch of noise
in a tight range," said Michael O'Neill, vice president of FX
trading at Jitneytrade. He blamed disappointing output at euro
zone factories in November for the Canadian dollar's weakness
overnight.
TD was still bullish on the Canadian dollar for the near
term, noting that a spike into the C$0.9650-C$0.9750 range is
possible in the next few weeks.
Canadian bond prices were similarly little changed across
the curve. The two-year bond was off 1 Canadian cent
to yield 1.197 percent, while the benchmark 10-year bond
was off 5 Canadian cents to yield 1.947 percent.