Canadian Dollar Slides On Oil Weakness After Trump's Comments
April 29 2019 - 5:01AM
RTTF2
The Canadian dollar was defensive against its major counterparts
in the European session on Monday, following a sell-off in crude
oil after U.S. President Donald Trump indicated that he had told
producer club OPEC to lower oil prices and called Saudi Arabia to
lessen the impact of lower Iranian oil exports by increasing flows
elsewhere.
Crude for June delivery fell $0.22 to $63.08 per barrel.
Trump tweeted on Friday that he spoke with the OPEC producers
and that he had demanded to increase output to reduce oil
prices.
"Spoke to Saudi Arabia and others about increasing oil flow. All
are in agreement," Trump tweeted.
Trump's statement caused a sell-off in oil, wiping out the sharp
price rally in oil seen since the start of the year.
Market participants expect Saudi Arabia to increase output as
soon as May to offset the lost Iranian crude oil.
The loonie showed mixed trading against its major counterparts
in the Asian session. While it rose against the yen and the
greenback, it fell against the euro and the aussie.
The loonie slipped to 1.3480 against the greenback, from a 5-day
high of 1.3450 touched at 1:30 am ET. If the loonie drops further,
1.36 is possibly seen as its next support level.
The loonie declined to 1.5040 against the euro, after rising as
high as 1.4993 at 5:15 pm ET. Next key support for the loonie is
likely seen around the 1.52 level.
Survey data from the European Commission showed that Eurozone
economic sentiment weakened for a tenth straight month in April and
at a faster-than-expected pace, amid sharp deterioration in the
morale in industry.
The economic sentiment index decreased to 104 from 105.6 in
March. Economists had expected a score of 105. The Canadian
currency touched a 5-day low of 0.9503 against the aussie, compared
to last week's closing value of 0.9465. The loonie is seen finding
support around the 0.965 area.
The loonie gave up some of its early gains against the yen with
the pair trading at 82.95. This follows a high of 83.04 touched at
3:00 am ET. On the downside, 80.5 is possibly seen as the next
support level for the loonie.
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