Canadian Dollar Falls On Weakening Oil Prices
November 07 2017 - 1:16AM
RTTF2
The Canadian dollar weakened against its major rivals in early
European deals on Tuesday, as oil prices declined amid a higher
dollar on the back of rising treasury yields.
Crude for December delivery fell $0.09 to $57.26 per barrel. A
stronger US dollar tends to make the dollar-denominated oil
costlier for the buyers in foreign currencies. Oil surged overnight
as Saudi Crown Prince Mohammed bin Salman's anti-corruption
crackdown had led to a new wave of arrests of royals and minister.
The American Petroleum Institute will release its crude inventory
data later in the day, with analysts predicting a drop of 2.8
million barrel in crude oil inventories. This will be followed by
official data from the Energy Information Administration on
Wednesday. European stocks are trading mixed, with banks gaining
ground on growth optimism after ECB President Mario Draghi said
there is little evidence that negative rates are undermining
banking profitability. The currency rose against its major rivals
in the Asian session, with the exception of the greenback. The
loonie edged down to 1.2763 against the greenback, from a high of
1.2703 hit at the commencement of today's trading. The loonie is
likely to find support around the 1.31 mark.
The loonie retreated to 89.52 against the yen, from its previous
high of 89.73. Continuation of the loonie's downtrend may see it
challenging support around the 88.00 region.
Official data showed that Japan labor cash earnings rose 0.9
percent on year in September.
That exceeded expectations for an increase of 0.5 percent and
was up from 0.7 percent in August.
The loonie reversed from an early near a 2-week high of 0.9753
against the aussie, falling back to 0.9772. The next possible
support for the loonie is seen around the 0.99 area.
Australia's central bank decided to leave its key interest rate
unchanged at a record low, as widely expected.
The board of the Reserve Bank of Australia, governed by Philip
Lowe, maintained the cash rate at 1.50 percent. The bank had
reduced the rate by 25-basis points each in August and May last
year.
Having advanced to near a 3-week high of 1.4739 against the euro
at 3:45 am ET, the loonie reversed direction and dropped to 1.4769.
On the downside, 1.49 is possibly seen as the next support level
for the loonie.
Data from Eurostat showed that Eurozone retail sales rebounded
in September largely reflecting a recovery in food sales.
Retail sales grew 0.7 percent month-on-month in September,
reversing a 0.1 percent fall in August. This was the first increase
in three months and came in better than the expected expansion of
0.6 percent.
Looking ahead, U.S. consumer credit for September is slated for
release in the New York session.
At 12:35 pm ET, Federal Reserve Governor Randal Quarles speaks
at The Clearing House Annual Conference, in New York.
BOC Governor Stephen Poloz speaks on inflation at an event
jointly hosted by the Chartered Financial Analyst Society of
Montreal and the Montreal Council on Foreign Relations at 12:55 pm
ET.
At 2:30 pm ET, Fed Chair Janet Yellen delivers acceptance
remarks at the presentation of the Paul H. Douglas Award for Ethics
in Government, in Washington DC.
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