Canadian Dollar Weakens On Falling Oil Prices
May 25 2018 - 3:44AM
RTTF2
The Canadian dollar slipped against its major counterparts in
the European session on Friday, as oil prices fell following media
reports that Saudi Arabia and Russia are planning to raise oil
output, which would be finalized as early as June.
Crude for July delivery fell $1.25 to $69.46 per barrel.
OPEC and non-OPEC members are discussing to raise output by
about 1 million barrels per day, reports said.
Saudi Energy Minister Khalid al-Falih said that "all options are
on the table" on relaxing the terms of the global oil supply
deal.
The talks are targeted to ease the production restrictions,
after oil hit $80 a barrel.
The loonie showed mixed trading against its major rivals in the
Asian session. While it held steady against the euro and the
aussie, it fell against the greenback. Against the yen, it
rose.
The loonie fell to more than a 5-week low of 0.9802 against the
aussie, from a high of 0.9751 hit at 5:00 pm ET. If the loonie
continues its fall, 0.99 is possibly seen as its next support
level.
The loonie reached as low as 1.5145 against the euro, down from
a high of 1.5088 hit at 3:45 am ET. Next key support for the loonie
is likely seen around the 1.52 level.
Survey data from Ifo Institute showed that Germany's business
confidence remained stable in May.
The business climate index came in at 102.2 in May, unchanged
from April. The score was seen at 102.
The loonie fell back to 1.2920 against the greenback, heading
closer to pierce a 10-day low of 1.2922 seen at 3:05 am ET. The
next possible support for the loonie is seen around the 1.31
level.
The loonie pared some of its early gains to 84.70 against the
yen, coming off from a high of 85.13 hit at 9:30 pm ET. The loonie
is seen finding support around the 83.00 region.
Data from the Ministry of Internal Affairs and Communications
showed that overall consumer prices in Tokyo rose 0.4 percent on
year in May.
That was beneath expectations for 0.5 percent, which would have
been unchanged.
Looking ahead, U.S. durable goods orders for April and
University of Michigan's final consumer sentiment index for May
will be out in the New York session.
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