Canadian Dollar Drops Amid Risk Aversion
August 21 2017 - 12:25AM
RTTF2
The Canadian dollar weakened against its most major opponents in
early European deals on Monday, as the ouster of White House chief
strategist Steve Bannon by U.S. President Donald Trump and the
start of joint military drills by the U.S. and South Korea sapped
investor appetite for riskier assets.
Bannon was ousted on Friday, becoming the latest high-ranking
official to leave the Trump administration. As per media reports,
his resignation was submitted earlier in August, but had to be
pushed back following the violence in a white nationalist rally in
Charlottesville, Virginia.
The turmoil in the White House cast worries about Trump's
ability to fulfill his economic agenda.
U.S. and South Korean forces began joint military drills on the
Korean peninsula, ending on August 31. The move comes on the back
of geopolitical tensions earlier this month between Trump and
Pyongyang.
Oil prices slipped as a meeting of the OPEC /non-OPEC Joint
Technical Committee began in Vienna, where oil producer nations are
expected to ensure compliance with output cuts.
Crude for October delivery fell $0.11 to $48.55 per barrel.
The loonie has been trading in a negative territory in the Asian
session.
The loonie retreated to 1.2607 against the greenback and 1.4803
against the euro, from its early highs of 1.2561 and
1.4765,respectively. If the loonie extends decline, 1.28 and 1.49
are likely seen as its next support levels against the greenback
and the euro, respectively.
The loonie that closed Friday's trading at 86.76 against the yen
weakened to 86.41. The next possible support for the loonie is seen
around the 84.00 level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's all industry activity recovered in June. The all
industry activity index rose 0.4 percent month-on-month in June,
reversing a 0.8 percent fall in May. The monthly growth came in
line with expectations.
On a yearly basis, all industry activity growth eased to 2.2
percent in June from 3.2 percent in May.
The loonie held steady against the aussie, after having fallen
to 0.9985 early in the Asian session. The pair closed last week's
deals at 0.9971.
Looking ahead, Canada wholesale sales data for June is due to be
released at 8:30 am ET.
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