Canadian Dollar Declines As Oil Prices Slide Amid Trade Fears
June 19 2018 - 6:32AM
RTTF2
The Canadian dollar dropped against its major counterparts in
early New York deals on Tuesday amid falling oil prices, as fears
over a global trade war intensified after U.S. President Donald
Trump threatened to impose additional tariffs on Chinese goods
worth $200 billion and Beijing vowed to "immediately"
retaliate.
Crude for August delivery fell $1.05 to $64.64 per barrel.
On Monday, Trump said that the U.S. will impose tariffs on an
additional $200 billion worth of Chinese goods, should China
proceeds with its pledge to hit back against the U.S. tariffs
imposed last week.
"Further action must be taken to encourage China to change its
unfair practices, open its market to United States goods, and
accept a more balanced trade relationship with the United States,"
Trump said.
China's Commerce Ministry accused the White House of
blackmailing by threatening to impose additional tariffs and warned
that it would strike back with comprehensive measures if Washington
push forward with the plan.
Oil has also suffered from speculation that OPEC will ramp up
production after this week's meeting in Vienna. Russian output is
also expected to increase after a prolonged supply quota.
The loonie drifted lower to 82.62 against the yen, its weakest
since April 4. The loonie is poised to challenge support around the
80.00 level.
The loonie slipped to a 1-year low of 1.3292 against the
greenback and held steady thereafter. The loonie is seen finding
support around the 1.35 region.
Data from the Commerce Department showed a much bigger than
expected jump in new residential construction in the U.S. in
May.
The report said housing starts spiked by 5.0 percent to an
annual rate of 1.350 million in May after tumbling by 3.1 percent
to a revised rate of 1.286 million in April.
The loonie reversed from an early high of 1.5268 against the
euro, easing back to 1.5362. This may be compared to a 1-1/2-month
low of 1.5383 set at 11:15 pm ET. On the downside, 1.55 is possibly
seen as the next support level for the loonie.
Report from German Ifo Institute showed that Germany's economy
is forecast to expand at slower pace this year and next as global
economic risks increased significantly.
In the Summer Forecast, the think tank projected the economy to
expand 1.8 percent each this year and next. Earlier, the Ifo had
forecast 2.6 percent growth for 2018 and 2.1 percent in 2019.
Reversing from an early near a 3-week high of 0.9739 against the
aussie, the loonie fell back to 0.9785. If the loonie falls
further, 0.99 is possibly seen as its next support level.
Weekly survey compiled by the ANZ bank and Roy Morgan Research
showed that Australia's consumer confidence weakened during the
week ended June 17.
The consumer confidence index dropped to 122.1 from 123.0 in the
preceding week. However, the index remained comfortably above its
long term average.
Euro vs CAD (FX:EURCAD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs CAD (FX:EURCAD)
Forex Chart
From Apr 2023 to Apr 2024