Canadian Dollar Weakens As Oil Prices Drop
October 25 2022 - 4:37AM
RTTF2
The Canadian dollar dropped against its major counterparts in
the European session on Tuesday amid falling oil prices, as weak
economic data across the globe fuelled concerns that global demand
may be faltering.
WTI crude for December delivery fell $1.17 to 83.41 a
barrel.
U.S. business activity shrank for a fourth month in October, in
a sign that client demand is falling.
Data released over the weekend showed demand from China remained
lackluster in September as a result of strict COVID-19 policy that
has crimped business and trade.
Following Xi Jinping's shocking move to tighten his grip on
power at a major leadership reshuffle, it is now clear that the
country won't compromise on issues over Taiwan and the zero-COVID
policy.
The loonie fell to 1.3568 against the euro and 108.33 against
the yen, after rising to 1.3511 and 108.87, respectively in early
deals. The next likely support for the loonie is seen around 1.38
against the euro and 102.5 against the yen.
The loonie edged down to 0.8684 against the aussie and 1.3748
against the greenback, pulling away from its early highs of 0.8633
and 1.3679, respectively. The loonie is likely to find support
around 0.88 against the aussie and 1.40 against the greenback.
Looking ahead, U.S. consumer confidence index for October and
FHFA's house price index and S&P/Case-Shiller home price index
for August will be out in the New York session.
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