Canadian Dollar Weakens Amid Falling Oil Prices As U.S. Weighs Plan To Release Oil From Reserves
March 30 2022 - 11:16PM
RTTF2
The Canadian dollar fell against its most major counterparts in
the Asian session on Thursday, following a drop in oil prices as
President Joe Biden prepared a plan to release oil from U.S.
reserves to control inflation.
The Biden administration is planning to release up to 180
million barrels of oil from strategic reserves for several
months.
Biden is expected to make an announcement later today, when he
will give remarks on gas prices from the White House.
West Texas Intermediate futures on the NYMEX have slipped to
near $100 per barrel ahead of the OPEC meeting.
The Organization of the Petroleum Exporting Countries and their
allies, known as OPEC+, is expected to maintain policy steady and
boost output by 400,000 barrels per day in April.
Hopes of de-escalation in Ukraine conflict faded after Russia
said that there were no breakthroughs following in-person
negotiations in Turkey.
The loonie fell to a 2-day low of 1.2520 against the greenback
and near a 2-week low of 1.3980 against the euro, reversing from
its early highs of 1.2476 and 1.3918, respectively. The loonie may
challenge support around 1.28 against the greenback and 1.42
against the euro.
The loonie edged down to 97.26 against the yen, after rising to
98.01 earlier in the session. The loonie may find support around
the 94.00 mark.
In contrast, the loonie recovered to 0.9351 against the aussie,
from a low of 0.9404 seen at 8:45 pm ET. The loonie is likely to
face resistance around 0.92 the region, if it gains again.
Looking ahead, German jobless rate for March and Eurozone
jobless rate for February are due in the European session.
U.S. weekly jobless claims for the week ended March 26, personal
income and spending data for February will be published in the New
York session.
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