Canadian Dollar Lower Amid Falling Oil Prices
12 November 2021 - 7:16PM
RTTF2
The Canadian dollar lost ground against its major counterparts
in the European session on Friday, as oil prices dropped amid a
firm dollar and on the OPEC warning that high prices could hit the
demand outlook.
The dollar held firm after strong U.S. inflation data fueled
expectations for faster rate hikes by the Federal Reserve.
The Organization of the Petroleum Exporting Countries said that
a slowdown in the pace of recovery in the fourth quarter is likely
to reduce demand.
In its monthly report, the OPEC slashed the oil demand forecast
for the fourth quarter to 99.49 million barrels per day, down by
330,000 barrels per day from the October forecast.
The cartel said that slower-than-expected demand in China and
India in the third quarter has contributed to a lowering of the
outlook for the year.
European stocks were mixed as investors digested strong U.S.
inflation reading and corporate earnings.
The loonie reached a session's low of 90.46 versus the yen, from
a high of 90.86 seen at 2:15 am ET. On the downside, 88.00 is seen
as the next likely support for the loonie.
The loonie dipped to more than a 5-week low of 1.2605 against
the greenback, following a high of 1.2569 set at 2:30 am ET. The
loonie is seen finding support around the 1.29 level.
The loonie was lower against the euro, at 1.4411. The loonie may
test support around the 1.46 region, if it falls again.
After rising to 0.9161 at 5 pm ET, the loonie weakened to 0.9194
against the aussie. The loonie is poised to find support around the
0.94 region.
Looking ahead, University of Michigan's preliminary consumer
sentiment for November is scheduled for release in the New York
session.
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