Canadian Dollar Falls As Oil Prices Plunge
15 June 2020 - 5:55PM
RTTF2
The Canadian dollar declined against its major counterparts in
the European session on Monday amid falling oil prices, as rising
coronavirus infections in the United States and elsewhere stoked
fears about energy demand.
Crude for July delivery fell $0.82 to $35.44 per barrel.
Weak data from China also stoked worries about the global growth
outlook.
Over 25,000 new U.S. cases were reported on Saturday alone as
more states reported record new infections and
hospitalizations.
Beijing recorded a spate of new covid-19 cases in a major
wholesale food market, raising worries about a second wave of
coronavirus infections.
Tokyo reported 47 new coronavirus cases on Sunday, the highest
since May 5, as the capital eases restrictions and readies to fully
reopen the economy.
China's industrial production grew 4.4 percent on a yearly basis
in May, faster than the 3.9 percent increase logged in April, data
from the National Bureau of Statistics showed. Economists had
forecast a 5 percent rise.
Retail sales dropped at a slower pace of 2.8 percent in May from
last year, slower than the 7.5 percent decrease seen in April.
Sales were forecast to fall 2 percent.
The loonie dropped to 1.5394 against the euro, from a high of
1.5282 seen at 5:00 pm ET. The loonie is poised to challenge
support around the 1.55 level.
The loonie fell to a 2-week low of 1.3686 versus the greenback
and held steady thereafter. The loonie is seen finding support
around the 1.38 level.
The loonie reached as low as 78.32 against the yen and held
steady thereafter. The next possible support for the loonie is seen
around the 77.00 level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary industry activity declined for the third
straight month in April.
Tertiary industry activity decreased 6.0 percent month-on-month
in April following a 3.8 percent fall in March.
The loonie pulled back to 0.9316 against the aussie, from an
early near 2-week high of 0.9271, and held steady thereafter. On
the downside, 0.94 is likely seen as the next support for the
loonie.
Looking ahead, Canada manufacturing sales for April and New York
Fed's empire manufacturing survey for June are set for release in
the New York session.
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