Canadian Dollar Weakens As Oil Prices Fall
24 May 2018 - 1:41PM
RTTF2
The Canadian dollar declined against its major counterparts in
the Asian session on Thursday, after an official data showed an
unexpected build in U.S. crude inventories last week.
Crude for July delivery fell $0.26 to $71.58 per barrel.
Data from the Energy Information Administration showed Wednesday
that U.S. oil inventories jumped 5.8 million barrels, versus
expectations of a 2 million barrel drawdown.
Gasoline stockpiles also rose, hinting that U.S. drivers are
resisting $3/gal at the pump.
Oil was also weighed by concerns about the likelihood of OPEC
increasing oil supply in June.
OPEC ministers will be on hand in Russia for key energy
conference to discuss the issue.
The loonie edged down to 85.09 against the yen, from a high of
85.78 hit at 5:00 pm ET. On the downside, 84.00 is likely seen as
the next support for the loonie.
Data from the Cabinet Office showed that Japan's leading index
weakened more than initially estimated in March.
The leading index, which measures the future economic activity,
dropped to 104.4 in March from 105.9 in February. The flash score
for March was 105.0.
The loonie reversed from an early high of 0.9695 against the
aussie, dropping to 0.9727. The next possible support for the
loonie is seen around the 0.99 level.
The loonie weakened to 1.5061 against the euro, after having
advanced to 1.5005 at 5:00 pm ET. If the loonie continues its fall,
1.52 is possibly seen as its next support level.
The loonie held steady at 1.2850 against the greenback, after
reversing from a high of 1.2829 hit at 7:15 pm ET. Next key support
for the loonie is likely seen around the 1.30 level.
Looking ahead, U.K. retail sales data for April is scheduled for
release in the European session.
At 7:30 am ET, the European Central Bank publishes the accounts
of the monetary policy meeting of the Governing Council held on
April 25-26.
In the New York session, U.S. weekly jobless claims for the week
ended May 19, house price index for March and existing home sales
for April are due.
Atlanta Fed President Raphael Bostic will deliver speech at a
research event on technology-enabled economic disruptions,
co-hosted by the Atlanta Fed and Dallas Fed in Dallas at 10:35 am
ET.
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