Canadian Dollar Slides As Oil Prices Weaken
November 29 2017 - 12:58AM
RTTF2
The Canadian dollar dropped against its major rivals in the
European session on Wednesday, as oil prices fell following an
industry data showing an increase in crude inventories and on
doubts over the extension of output curbs by OPEC and Russia at the
meeting in Vienna.
Crude for January delivery fell $0.50 to $57.49 per barrel.
Data from the American Petroleum Institute showed Tuesday that
US crude inventories rose by 1.8 million barrels to 457.3 million
barrels in the week ended November 24. Analysts had expected the
inventories to fall by 2.3 million barrels.
The Energy Information Administration will publish its official
data later in the day.
With the OPEC and non-OPEC members set to meet in Vienna on
Thursday, investors turned cautious over the possibility of
extension of output cut deal that had been priced in.
Sources said that the main hurdle for reaching an agreement is
due to differences between Russia and Saudi Arabia. Ongoing oil
production reduction of 1.8 million barrels per day will expire in
March 2018.
The currency traded mixed in the Asian session. While it fell
against the greenback and the euro, it rose against the aussie and
the yen.
The loonie slid to 1.2848 against the greenback, its lowest
since November 2. The next possible support for the loonie is seen
around the 1.30 region.
Reversing from an early high of 87.13 against the yen, the
loonie edged down to 86.79. If the loonie extends decline, 86.00 is
likely seen as its next support level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's retail sales were roughly flat on a seasonally
adjusted basis in October.
That missed forecasts for an increase of 0.2 percent and was
down from 0.8 percent in September.
The loonie fell to a 6-month low of 1.5242 against the euro and
held steady thereafter. Continuation of the loonie's downtrend may
see it challenging support around the 1.54 level.
Survey data from the European Commission showed that Eurozone
economic confidence continued to improve in November.
The economic confidence index improved to 114.6 from 114.1 in
the previous month. The score came in line with expectations.
The loonie pared gains to 0.9740 against the aussie, from a high
of 0.9721 hit at 10:45 pm ET. The loonie is seen finding support
around the 1.00 mark.
Looking ahead, German preliminary CPI for November is due
shortly.
In the New York session, U.S. pending home sales for October,
second estimate of GDP data for the third quarter and Fed Beige
book report are due.
At 9:00 am ET, the Bank of England governor Mark Carney speaks
about the Fair and Effective Markets Review at the Fixed Income
Currencies and Commodities Markets Standards Board, in London
The BoE Deputy Governor David Ramsden participates in a panel
discussion at the Fixed Income Currencies and Commodities Markets
Standards Board in London at 9:45 am ET.
The Fed Chair Janet Yellen testifies on the US economic outlook
before Joint Economic Committee of Congress in Washington DC at
10:00 am ET.
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