Canadian Dollar Weakens As Oil Prices, European Shares Decline
The Canadian dollar declined against its most major counterparts
in the European session on Tuesday, as oil prices fell on receding
worries about a shutdown of the Colonial Pipeline and on a drop in
European shares amid inflation worries.
The operator of the US' Colonial Pipeline, which is the largest
refined-products pipeline in the country, said that one of its
lines has been partially restored and that a phased approach has
been executed to facilitate a return to service by the end of the
During the White House press briefing on Monday, Homeland
Security adviser Elizabeth Sherwood-Randall said the cyber breach
did not affect fuel supplies.
Fears about inflation rattled global markets, as traders hope
that growing price pressures might prompt the Fed to wind back
monetary policy support sooner than expected.
China's factory gate prices rose at the fastest rate in three
and a half years in April, official data showed.
Wednesday's U.S. CPI report is expected to show an annual rise
of 3.6 percent in April.
The loonie retreated to 1.4747 against the euro and 0.9502
against the aussie, off its prior session's high of 1.4667 and a
4-day high of 0.9467, respectively, The next possible support for
the loonie is seen around 1.49 against the euro and 0.96 against
The loonie hit a 4-day low of 89.36 against the yen, down from
Monday's close of 89.88. The loonie may locate support around the
Data from the Ministry of Communications and Internal Affairs
showed that Japan household spending grew 6.2 percent on year in
March - coming in at 309,800 yen.
That beat forecasts for an increase of 1.5 percent following the
6.6 percent drop in February.
The loonie, however, rose to 1.2126 against the greenback, after
falling to 1.2088 at 1:30 am ET. The loonie is seen finding
resistance around the 1.25 mark.