Canadian Dollar Drops On Weaker Oil Prices
July 22 2024 - 7:26AM
RTTF2
The Canadian dollar weakened against its most major counterparts
in the New York session on Monday amid falling oil prices, as U.S.
President Joe Biden's exit from the election race sparked political
uncertainty.
Amid pressure from party leaders, Biden dropped out of the
presidential race on Sunday and endorsed Vice President Kamala
Harris as the Democratic nominee.
Biden offered his "full support and endorsement" for Kamala
Harris and said he would complete his current term.
Later in the week, focus is likely to shift to a report on
personal income and spending in June, which includes readings on
inflation said to be preferred by the Federal Reserve.
The data could have a significant impact on the outlook for
interest rates, with the Fed currently widely expected to lower
interest rates by a quarter point in September.
The loonie fell to more than a 5-week low of 1.3775 against the
greenback and more than an 8-month low of 1.4986 against the euro,
off its early highs of 1.3705 and 1.4931, respectively. The loonie
is likely to challenge support around 1.39 against the greenback
and 1.51 against the euro.
The loonie declined to a 4-day low of 113.74 against the yen and
held steady thereafter. The currency is poised to challenge support
around the 109.00 level.
Meanwhile, the loonie climbed to near a 3-week high of 0.9131
against the aussie. If the currency continues its uptrend, 0.90 is
possibly seen as its next resistance level.
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