Canadian Dollar Weakens On Falling Oil Prices
04 October 2017 - 9:19PM
RTTF2
The Canadian dollar weakened against its most major counterparts
in early New York deals on Wednesday, as oil prices declined
following an industry data showing a larger than build in gasoline
stocks last week.
Crude for November delivery fell $0.02 to $50.40 per barrel.
Data from the American Petroleum Institute showed late Tuesday
that gasoline inventories surged up 4.19 million barrels for the
week ended September 29. Analysts were expecting an increase of 1.5
million barrels.
Crude oil stockpiles dropped 4.08 million barrels and distillate
stocks were lower by 584,000 barrels.
The U.S. Energy Information Administration will release release
its official inventory report at 10:30 am ET.
Speaking at the Russian Energy Week forum in Moscow, the OPEC
Secretary-General, Mohammad Barkindo, stated that the participating
countries are strictly adhering to terms of the OPEC deal.
Investors await speeches by Federal Reserve officials, the U.S.
nonfarm payrolls report, foreign-exchange reserves data from China
and minutes of the last ECB meeting this week for further
direction.
The currency was trading mixed in the European session. While it
rose against the aussie and the greenback, it fell against the yen
and the euro.
The loonie eased to 1.4689 against the euro, from a 5-day high
of 1.4651 hit at 5:45 am ET. If the loonie extends decline, 1.48 is
possibly seen as its next support level.
Final data from IHS Markit showed that the euro area private
sector ended the third quarter strongly as output growth
accelerated to a four-month high, underpinned by new orders in
September.
The composite output index rose to 56.7 in September from 55.7 a
month ago. The score matched the preliminary estimate.
The loonie fell to 1.2498 against the greenback, off its early
5-day high of 1.2449. The next possible support for the loonie is
seen around the 1.265 area.
Data from payroll processor ADP showed that employment in the
U.S. private sector climbed by slightly more than anticipated in
the month of September.
ADP said private sector employment rose by 135,000 jobs in
September after surging up by a revised 228,000 jobs in August.
The loonie edged down to 90.15 against the Japanese yen and held
steady thereafter. The pair finished Tuesday's deals at 90.36.
The latest survey from Nikkei showed that Japan's services
sector continued to expand in September, albeit at a slower rate,
revealed on Wednesday with a PMI score of 51.0.
That's down from 51.6 in August, although it remains above the
boom-or-bust line of 50 that separates expansion from
contraction.
On the flip side, the loonie was trading higher at 0.9796
against the aussie, up from an early 5-day low of 0.9813. The pair
was valued at 0.9783 when it closed deals on Tuesday.
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