Canadian Dollar Slides On Declining Oil Prices
23 September 2019 - 6:17PM
RTTF2
The Canadian dollar declined against its most major counterparts
in the European session on Monday amid falling oil prices, as trade
worries persisted and business activity readings from across the
euro zone suggested growth had ground to a halt.
Crude for November delivery fell $0.36 to $57.73 per barrel.
U.S. President Donald Trump said he didn't need a trade deal
with China before the 2020 election, fueling pessimism about the
prospect of a trade truce between the world's two largest
economies.
The euro area private sector moved close to stalling at the end
of the third quarter, survey data from IHS Markit showed today.
Germany's private sector contracted the most since late 2012 as
the downturn in manufacturing deepened and service sector growth
lost momentum.
The loonie declined to near a 3-week low of 80.67 against the
yen, from last week's closing value of 81.07. The currency may
challenge support around the 78.5 region.
The loonie fell to a 4-day low of 1.3305 against the greenback,
down from Friday's closing quote of 1.3262. The next possible
support for the loonie is seen around the 1.35 level.
The loonie edged down to 0.9007 against the aussie from Friday's
closing value of 0.8970. If the loonie drops further, 0.92 is
likely seen as its next support level.
On the flip side, the loonie advanced to a 6-day high of 1.4579
against the euro from last week's closing value of 1.4612. Next key
resistance for the loonie is seen around the 1.43 level.
Survey data from IHS Markit showed that Eurozone flash composite
output index fell unexpectedly to a 75-month low of 50.4 in
September from 51.9 in August.
Economists had forecast the score to rise slightly to 52.0. The
reading signaled the weakest growth across manufacturing and
services since June 2013.
Looking ahead, Canada wholesale sales for July and Markit's U.S.
manufacturing PMI for September are scheduled for release in the
New York session.
At 9:50 am ET, Federal Reserve Bank of New York President John
Williams is set to speak at the US Treasury Market Conference in
New York, via satellite.
At 1:00 pm ET, Federal Reserve Bank of St. Louis President James
Bullard will deliver a speech about the US economy and monetary
policy at the Effingham Chamber of Commerce Luncheon in
Illinois.
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