Canadian Dollar Slides On Falling Oil Prices
February 07 2018 - 9:53PM
RTTF2
The Canadian dollar weakened against its major opponents in
early European deals on Thursday, as oil prices dropped following a
report showing increase in U.S. crude stockpiles last week.
Crude for March delivery fell $0.10 to $61.69 per barrel.
Data from the Energy Information Administration showed that U.S.
commercial crude oil inventories increased by 1.9 million barrels
from the previous week.
Total motor gasoline inventories increased by 3.4 million
barrels last week, and are in the middle of the average range.
The EIA also reported that U.S. crude production rose 332,000
barrels to 10.3 million barrels a day last week.
Investors focus on key events, including the Bank of England
monetary policy decision later today. Although the BoE is expected
to keep interest rates on hold, investors await the minutes as well
as updated forward guidance via the Quarterly Inflation Report for
more clues.
The loonie dropped to 1.2583 against the greenback, its lowest
since January 11. Continuation of loonie's downtrend may see it
challenging support around the 1.28 level.
The loonie edged down to 1.5437 against the euro, off its early
session's high of 1.5395. The loonie is likely to challenge support
around the 1.56 region.
Figures from Destatis showed that Germany's exports and imports
increased unexpectedly in December.
Exports rose 0.3 percent month-on-month in December, slower than
the 4.1 percent increase seen in November. However, shipments were
expected to fall 1 percent.
Reversing from an early multi-week high of 0.9804 against the
aussie, the loonie weakened to 0.9854. On the downside, 1.00 is
possibly seen as the next support level for the loonie.
The loonie fell back to 87.04 against the yen, from its early
high of 87.38. This may be compared to a 2-day low of 86.82 set in
the early Asian session. If the loonie falls further, it may find
support around the 85.00 mark.
Data from the Ministry of Finance showed that Japan logged a
current account surplus of 797.2 billion yen in December.
That was shy of expectations for a surplus of 1,056.9 billion
yen following the 1,347.3 billion yen surplus in November.
Looking ahead, European Central Bank's economic bulletin is due
shortly.
At 3:45 am ET, Deutsche Bundesbank President Jens Weidmann will
give a speech titled "Monetary Policy in the European Context" at
the Monetary and Economic Policies at the Atlantic conference in
Frankfurt.
The Reserve Bank of Australia Governor Philip Lowe speaks at the
A50 Australian Economic Forum in Sydney at 4:00 am ET.
The Bank of England's interest rate announcement is scheduled at
7:00 am ET. Economists expect the central bank to keep interest
rate at 0.50 percent and asset purchase program at GBP 435
billion.
In the New York session, Canada housing starts for January and
new housing price index for December, as well as U.S. weekly
jobless claims for the week ended February 3 are set for
release.
At 12:45 pm ET, the Bank of Canada Senior Deputy Governor
Carolyn Wilkins speaks about innovation and inclusive growth at the
G7 Symposium in Quebec.
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