* C$ slips to 93.87 U.S. cents
* Bond prices rise the curve
TORONTO, July 5 (Reuters) - The Canadian dollar fell against its U.S. counterpart on Monday morning, despite strength in the euro, a recent gauge of appetite for riskier assets and currencies.
World stock prices also slipped for the fourth day running on Monday and the greenback traded close to two-month lows on growing concerns of slowdowns in the United States and China, while European sovereign debt issues appeared to ease. [MKTS/GLOB]
"With euro popping up versus the U.S. dollar you'd almost believe that Canada should be strengthening. Instead we have not seen the Canadian dollar strengthen and instead we've seen strong demand for euro buying and Canada selling," said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets.
"What we're seeing is straight demand now versus Canada."
Concern about the U.S. economy mounted after Friday's jobs data showed weak private hiring, but trading was was expected to be thin on Monday because of the U.S. Independence Day holiday.
On the data front, the key event will be Friday's domestic employment figures for June, which are expected to show 15,000 jobs were added in the month. [ID:nN02188375]
At 8:09 a.m. (1209 GMT), the Canadian dollar was at C$1.0653 to the U.S. currency, or 93.87 U.S. cents, down from Friday's finish at C$1.0624 to the U.S. dollar, or 94.13 U.S. cents.
Adding pressure to the Canadian currency, said Gavsie, were large merger and acquisitions by Canadian companies needing to buy U.S. funds, which were expected to conclude this week.
In today's range, he said market players were watching for Canadian dollar softness at C$1.0675. "Very concerned that if it does break through that we're going to run up into the C$1.0710 area on a technical basis."
Canadian government bond prices, however, rallied across the curve.
The two-year government bondedged 4 Canadian cents to yield 1.425 percent, while the 10-year bond jumped 27 Canadian cents to yield 3.073 percent. (Reporting by Claire Sibonney; Editing by W Simon )
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