Canadian Dollar Falls As Oil Prices Weaken
May 28 2017 - 11:13PM
RTTF2
The Canadian dollar drifted lower against its most major
counterparts in the Asian session on Monday amid falling oil
prices, as rising oil rig count in the U.S. offsets OPEC-led
attempts to trim oversupply.
Crude for July delivery fell $0.13 to $49.67 per barrel.
Data from oil services group Baker Hughes showed that the oil
rig count rose by two to 722 last week. The total active US rig
count, including oil and natural-gas rigs, increased by seven to
908 for the week.
The American Petroleum Institute releases crude inventory data
on Wednesday, while the Energy Information will publish its
official data on Thursday. The weekly US stocks data from the API
and EIA is delayed by a day due to the Memorial Day holiday on
Monday.
The G 7 summit over the weekend failed to make progress on
narrowing differences on climate change, as the U.S. president said
he is still reviewing his government's position whether to scrap
the United States' involvement in the Paris Agreement.
The leaders were unified on stepping up efforts to combat
terrorism, but differences surfaced on trade and climate change at
a confidential session on the first day of the G7 summit in Sicily,
media reports quoted German Chancellor Angela Merkel as saying.
The loonie rose against its major rivals on Monday, with the
exception of the Japanese yen.
The loonie that closed Friday's trading at 1.3447 against the
greenback edged down to 1.3465. The next possible support for the
loonie is seen around the 1.36 region.
The loonie pared gains to 82.64 against the yen, from a high of
82.82 hit at 9:15 pm ET. On the downside, 80.00 is likely seen as
the next support level for the loonie.
The loonie edged down to 1.5042 against the euro, off early high
of 1.5018. Continuation of the loonie's downtrend may see it
finding support around the 1.52 area.
On the flip side, the loonie rose back to 0.9999 against the
aussie, heading to pierce its early 1-1/2-month high of 0.9997. The
pair was worth 1.0009 when it ended last week's trading.
Looking ahead, Eurozone M3 money supply for April is due in the
European session.
The European Central Bank President Mario Draghi testifies about
the economy and monetary developments before the Economic and
Monetary Affairs Committee, in Brussels at 10:00 am ET.
The U.S. markets remain closed due to the Memorial Day
holiday.
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