Canadian Dollar Drops On Falling Oil Prices
June 15 2018 - 3:26AM
RTTF2
The Canadian dollar slipped against its major counterparts in
the European session on Friday, as oil prices declined on U.S-China
trade war fears, as U.S. President Donald Trump is set to unveil
tariffs on $50 billion in China goods later in the day.
Crude for July delivery fell $0.23 to $66.66 per barrel.
The Trump administration will release details of a revised list
of 800 product categories today.
Beijing vowed that it will retaliate "appropriately" to any
measures imposed by the US.
Investors await a key meeting of the Organization of the
Petroleum Exporting Countries in Vienna on June 22, when the cartel
is expected to make a decision on increasing output.
Following a meeting with the Saudi Arabia energy minister on
Thursday, Russian Energy Minister Alexander Novak remarked that
both nations support a gradual increase in output, although
specifics will be discussed next week.
The currency dropped against its major rivals in the Asian
session, with the exception of the aussie.
The loonie declined to a weekly low of 84.01 against the yen,
from a high of 84.47 seen at 5:45 pm ET. The next likely support
for the loonie is seen around the 82.00 level.
The Bank of Japan kept its monetary stimulus unchanged as widely
expected.
Governor Haruhiko Kuroda and his board members decided by an 8-1
majority vote to hold its target of raising the amount of
outstanding JGB holdings at an annual pace of about JPY 80
trillion.
The loonie weakened to 1.3160 against the greenback, its weakest
since June 2017. The loonie is seen finding support around the 1.34
region.
The loonie slipped to 1.5257 against the euro and 0.9822 against
the aussie, reversing from its early high of 1.5151 and a 2-week
high of 0.9782, respectively. The next possible support for the
loonie is seen around 1.54 against the euro and 1.00 against the
aussie.
Looking ahead, Canada existing home sales for May and
manufacturing sales for April, New York Fed's empire manufacturing
survey for June, U.S. industrial production for May and University
of Michigan's preliminary consumer sentiment index for June are
scheduled for release in the New York session.
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