Canadian Dollar Lower Amid Falling Oil Prices
May 26 2021 - 10:37PM
RTTF2
The Canadian dollar fell against its most major rivals in the
Asian session on Thursday, as oil prices declined with investors
focused on the Iranian nuclear talks being held in Vienna aimed to
revive a nuclear accord.
Crude for July delivery dropped $0.31 to $65.90 per barrel.
Talks between Iran and world powers resumed on Tuesday for
reviving the 2015 nuclear deal, formally known as the Joint
Comprehensive Plan of Action. U.S. top negotiator Rob Malley said
on Tuesday that the latest round of talks was constructive and saw
meaningful progress. But much work still needed to be done.
Traders focused on the prospects of an increase in Iranian
supplies, if sanctions on the country are lifted.
The Organization of Petroleum Exporting Countries and its allies
are set to meet on June 1 to discuss the state of the market and
their production policy.
The currency was further weighed by concerns over a tightening
of monetary policy by the Federal Reserve, ahead of the release of
a crucial U.S. inflation data this week.
The loonie reached as low as 1.4796 against the euro and held
steady thereafter. The pair had ended Wednesday's trading at
1.4770.
The loonie weakened to 89.91 against the yen and 0.9392 against
the aussie, compared to Wednesday's closing values of 90.00 and
0.9381, respectively. The next possible support for the loonie is
seen around 88.00 against the yen and 0.95 against the aussie.
In contrast, the loonie rebounded from a weekly low of 1.2142
against the greenback and was trading at 1.2106. Next key
resistance for the loonie is seen around the 1.20 level.
Looking ahead, U.S. weekly jobless claims for the week ended May
22, durable goods orders and pending home sales for April and GDP
data for the first quarter will be featured in the New York
session.
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