Canadian Dollar Weakens Amid Falling Oil Prices, Risk Aversion
The Canadian dollar dropped against its major counterparts in
the Asian session on Friday, as oil prices fell, while risk
sentiment worsened on rising bond yields and weak U.S. data
The deep freeze in Texas shut down refineries, denting the
demand of crude over the coming weeks.
Refinery outages and the possibility of oil refiners making
repairs before reviving operations stoked concerns about
Asian markets declined as higher yields and dismal U.S. data
triggered worries about the fragile economic recovery.
U.S. Treasury yields are hovering near one-year highs, driven by
the so-called "reflation trade," which involves betting on price
growth stimulated by fiscal spending and vaccination
The loonie dropped to 0.9890 against the aussie, its lowest
level since January 7. If the loonie slides further, 1.00 is likely
seen as its next support level.
The loonie depreciated to a 2-day low of 83.11 against the yen,
off an early high of 83.40. The loonie may locate support around
the 81.00 level.
The loonie edged down to 1.5364 against the euro from
yesterday's close of 1.5322. The loonie is poised to challenge
support around the 1.55 mark.
The Canadian currency slipped to 1.2714 against the greenback
and held steady thereafter. At yesterday's close, the pair was
Looking ahead, PMI reports from major European economies are due
in the European session.
Canada retail sales for December and U.S. existing home sales
for January are set for release in the New York session.