Canadian Dollar Slides Amid Falling Oil Prices
March 25 2015 - 9:55AM
RTTF2
The Canadian dollar declined against its major rivals on
Wednesday's European deals, as European stocks retreated, while oil
prices fell ahead of official inventories data.
U.S. crude oil for May delivery was down $0.15 to $47.36 a
barrel.
Late Tuesday, the American Petroleum Institute said its data for
last week showed a 4.8-million-barrel gain in crude-oil supplies.
Rising inventories, coupled with weak demand growth are putting
more pressure on oil prices.
Official data from the Energy Information Administration is due
today.
The European markets were down, as investors remained cautious
over Greek debt talks, with the country risks running out of cash
by April 20.
The loonie pared gains to 95.57 against the Japanese yen and
1.2508 against the greenback, from early highs of 95.85 and 1.2479,
respectively. The next possible support for the loonie is seen
around 95.00 against the yen and 1.26 against the greenback.
The loonie reversed from an early high of 1.3634 against the
euro and fell to a 1-week low of 1.3743. Continuation of the
loonie's downtrend may lead it to a support around the 1.38
mark.
German business morale improved for the fifth straight month in
March, survey by the Ifo institute showed.
The Ifo Business Climate index climbed to 107.9 in March from
106.8 in February. It was forecast to rise to 107.3.
The loonie, which advanced to 0.9825 against the aussie at 3:00
am ET, eased to 0.9856. If the loonie extends fall, it may find
support around the 0.99 level.
The divergence between Australia's rising prices and falling
rents in the property market has widened further, the Reserve Bank
of Australia said in its Financial Stability Review report.
Consequently, the risk of large repricing and associated market
dislocation has increased.
"Commercial property prices have continued to rise at a national
level, driven in particular by investors' search for yield in the
global environment of low interest rates and ample liquidity, with
the lower Australian dollar also likely to be adding some impetus
to foreign demand," the central bank said.
Looking ahead, the Bank of Canada Deputy Governor Timothy Lane
is due to speak at the Kelowna Chamber of Commerce, in British
Columbia, at 3:30 pm ET.
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