Canadian Dollar Drops As Oil Prices Slide
January 16 2017 - 6:54PM
RTTF2
The Canadian dollar weakened against the other major currencies
in the Asian session on Tuesday, as oil prices slid amid
speculations that the major OPEC members will stick to planned
output reduction, and also on expectation that U.S. oil production
is likely to rise.
Meanwhile, investors turned cautious ahead of U.K. Prime
Minister Theresa May's speech on her government's Brexit plans
later today and amid growing uncertainty over U.S. policy ahead of
President-elect Donald Trump's inauguration later this week.
Traders await the Bank of Canada's upcoming policy meeting on
Wednesday, eventhough the economists expect no change.
Monday, the Canadian dollar showed mixed trading against its
major rivals. While the loonie fell against the U.S. dollar and the
yen, it rose against the euro. Against the Australian dollar, the
loonie held steady.
In the Asian trading, the Canadian dollar fell to nearly a
3-week low of 86.42 against the yen, a 6-day low of 1.3189 against
the U.S. Dollar, and a 4-day low of 1.3987 against the Australian
dollar, from yesterday's closing quotes of 86.65, 1.3173 and
1.3955, respectively. If the loonie extends its downtrend, it is
likely to find support around 84.00 against the yen, 1.34 against
the greenback, and 1.45 against the euro.
Against the Australian dollar, the loonie dropped to 0.9856 from
yesterday's closing value of 0.9849. The loonie may test support
near the 1.01 region.
Looking ahead, U.K. consumer price, producer price, retail price
indexed for December, and house price index for November and German
ZEW economic sentiment index for January are due to be released
later in the day.
At 6:00 am ET, European Central Bank Governing Council Member
Ewald Nowotny takes part in a panel discussion on "euro reforms in
turbulent times", in Vienna.
In the New York session, U.S. Empire State manufacturing index
for January is slated for release.
At 8:45 am ET, Federal Reserve Bank of New York President
William Dudley is expected to speak about consumer behavior at the
National Retail Federation Convention and Expo, in New York.
At 10:00 am ET, Federal Reserve Board Governor Lael Brainard is
expected to speak on monetary and fiscal policy before the
Brookings Institution, in Washington, U.S.
Subsequently, Federal Reserve Bank of San Francisco President
John Williams is expected to speak before the Sacramento Business
Review Economic Forecast event, in Sacramento, U.S.
Later in the day, the UK Prime Minister Theresa May is expected
to speak about details of the United Kingdom's exit from the
European Union, in London.
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