CANADA FX-C$ lower as contagion fears in Europe spreads

Mon Jul 11, 2011 9:14am EDT
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 * 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
 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)