Canadian Dollar Declines As Oil Prices Fall
May 25 2015 - 10:04AM
RTTF2
The Canadian dollar slipped against its major rivals in early
New York deals on Monday, as oil prices fell on the back of strong
dollar, which was underpinned by the Federal Reserve Chair Janet
Yellen's comments that the bank is set to raise rates later this
year.
Crude futures for July delivery fell $0.31 to $59.41 a
barrel.
While speaking to a business group in Providence, Rhode Island
on Friday, Yellen told that it is appropriate to raise rates later
this year, if the economy continues to strengthen.
Baker Hughes reported on Friday that the number of rigs drilling
for crude oil in the U.S. fell by only one to 659 last week, in a
sign that U.S shale producers may accelerate oil production in the
coming months.
Meanwhile, trading volumes were light, with U.S. markets and
most of the European markets shut for public holidays.
The loonie has been weaker against its major rivals, except the
euro, in the European session.
In early New York trading, the loonie edged down to 0.9633
against the aussie, off early high of 0.9598. Next key support for
the loonie is seen around the 0.97 region. At last week's close,
the pair was valued at 0.9608.
The loonie pared gains to 98.72 against the yen, after climbing
to 99.03 in early European deals. If the loonie extends slide, it
may challenge support around the 98.00 mark. At Friday's close, the
pair was worth 98.88.
The loonie declined to 1.2307 against the greenback, and has
been steady thereafter. The pair ended last week's trading at
1.2277. If the loonie continues slide, it may locate support around
the 1.25 mark.
Reversing from an early nearly 2-week high of 1.3477 against the
euro, the loonie slipped to 1.3517. On the downside, the loonie may
locate support near the 1.36 area.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024