Canadian Dollar Slides On Weak Oil Prices
September 17 2019 - 4:11AM
RTTF2
The Canadian dollar slipped against its major counterparts in
the European session on Tuesday, as oil prices fell declined after
surging in the aftermath of drone attacks on two major oil
facilities in Saudi Arabia.
Crude for November delivery fell $0.12 to $61.55 per barrel.
Oil soared on Monday after the devastating attacks that knocked
out 5 percent of global crude supply.
The rally halted today after the United States hinted at the
possible release of crude reserves.
In addition, investors await updates regarding the resumption of
operations in Saudi Arabia.
The Fed begins its two-day meeting today, with economists widely
expecting an additional 25 basis point cut in the federal funds
rate.
Investors eagerly await the Fed statement for its monetary
policy path for the rest of this year.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the aussie and the yen, it
fell against the greenback and the euro.
The loonie retreated to 81.55 against the yen, from a 4-day high
of 81.76 hit at 9:30 pm ET. The loonie is likely to challenge
support around the 80.5 region, if it drops again.
The loonie reversed from an early high of 1.3235 against the
greenback, dropping to 1.3260. The next possible support for the
loonie is seen around the 1.35 level.
After rising to a 5-day high of 1.4554 versus the euro at 5:15
pm ET, the loonie edged lower to 1.4618. The loonie is seen finding
support around the 1.49 mark.
Survey data from the think tank ZEW showed that Germany's
economic sentiment improved strongly and at a faster-than-expected
pace in September, after a slump in August.
The ZEW investor confidence index climbed to -22.5 from -44.1 in
August. Economists had expected a -38 reading.
The loonie eased off to 0.9071 against the aussie, from a 5-day
high of 0.9053 seen at 3:00 am ET. Next key support for the loonie
is seen around the 0.93 level.
Data from the Australian Bureau of Statistics showed that
Australia's house prices fell 0.7 percent on quarter in the second
quarter of 2019.
That exceeded expectations for a decline of 1.1 percent
following the 3.0 percent drop in the three months prior.
Looking ahead, Canada manufacturing sales for July, U.S.
industrial production for August and NAHB housing market index for
September are scheduled for release in the New York session.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024