Canadian Dollar Slides On Falling Oil Prices
November 09 2018 - 2:50AM
RTTF2
The Canadian dollar dropped against its major opponents in the
European session on Friday, as oil prices weakened amid signs of
rising global supply and concerns over economic slowdown in the
face of a worsening U.S.-China trade war.
Crude for December delivery dropped $1.03 to $59.67 a
barrel.
China's producer price inflation slowed for the fourth month in
October on cooling domestic demand, suggesting that economic
momentum in the world's second-largest economy is softening in the
face of simmering trade frictions with the United States.
Traders remained concerned that an economic slowdown may curb
fuel demand growth.
Further undermining the currency was a higher dollar, which was
buoyed by the Fed's hawkish stance on monetary policy.
Interest rate futures implied a 78 percent chance the U.S.
central bank would raise rates at its Dec. 18-19 meeting.
Overnight news that U.S. federal judge had halted construction
of the Keystone XL oil pipeline project also weighed on the
currency.
The currency has been trading lower against its major rivals in
the Asian session, with the exception of the aussie.
The loonie dropped to a 2-day low of 86.23 against the yen, from
a high of 86.76 hit at 6:00 pm ET. The loonie is poised to find
support around the 85.00 level.
The loonie declined to 1.3198 against the greenback, its weakest
since September 10. The loonie is likely to challenge support
around the 1.33 level.
The loonie edged down to 1.4986 against the euro, from its early
high of 1.4936. The loonie is seen finding support around the 1.51
mark.
Having advanced to 0.9532 against the aussie at 8:15 pm ET, the
loonie reversed direction and fell to 0.9561. The next possible
support for the loonie is seen around the 0.98 level.
Data from the Australian Bureau of Statistics showed that
Australia home loans declined a seasonally adjusted 1.0 percent on
month in September, coming in at 50,673.
That was in line with expectations following the 2.1 percent
contraction in August.
Looking ahead, U.S. producer prices for October, wholesale
inventories for September and University of Michigan's preliminary
consumer sentiment index for November are scheduled for release in
the New York session.
Federal Reserve Governor Randal Quarles gives speech about
financial regulation at the Brookings Institution in Washington DC
at 9:05 am ET.
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