CANADA FX-C$ lower as contagion fears in Europe spreads
* C$ weakens to C$0.9688, or $1.0322
* Equities, oil markets also trading lower
By Solarina Ho
TORONTO, July 11 (Reuters) - The Canadian dollar fell against the U.S. dollar on Monday as investors moved away from riskier assets on fears that sovereign debt issues in Europe could spread.
Markets were jittery over worries that Europe's debt crisis was moving into its core economies, including Italy, the euro zone's third-largest economy.
"There's seems to be some contagion with Italy. The Spain spreads are blowing out this morning as well. In that scenario, it's going to be difficult for equities to trade well, difficult for the Canadian dollar to trade well," said Darcy Browne, Managing Director at Capital Markets Trading at CIBC.
"It's kind of a wash more or less this morning with the risk-off scenario. Equities markets are down, oil's down, and the Canadian dollar is under a little bit of pressure here. It's running up against some strong technical resistance."
At 9:01 a.m. (1301 GMT), the currency CAD=D4 stood at C$0.9688 to the U.S. dollar, or $1.0322, down from Friday's North American finish of C$0.9607 to the U.S. dollar, or $1.0409.
Oil, a key Canadian export, and often influential in the currency's movements, fell by more than a dollar on euro worries, while a drop in Chinese crude imports also rekindled concerns about a slowdown in demand. [O/R] (Editing by Padraic Cassidy)
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