Canadian Dollar Drops As Commodities Weaken
April 25 2018 - 6:36AM
RTTF2
The Canadian dollar declined against its most major counterparts
in early New York deals on Wednesday, as commodities fell on the
back of a higher dollar, supported by rising yields on U.S.
bonds.
The ten-year yield rose above 3 percent for first time since
early 2014 in intraday trading on Tuesday before giving back
ground.
Concerns that rising inflation may lead the Federal Reserve to
hike interest rates faster than previously expected have recently
pushed yields higher.
Investors await weekly crude stockpiles data from the Energy
Information Administration due at 10:30 am ET.
Yesterday, the American Petroleum Institute reported that U.S.
crude inventories rose by 1.1 million barrels to 429.1 million in
the week ended April 20.
The Bank of Canada Governor Stephen Poloz along with Senior
Deputy Governor Carolyn Wilkins will testify before the Standing
Senate Committee on Banking, Trade, and Commerce, in Ottawa later
in the day.
The currency has been trading in a negative territory against
its major rivals in the European session.
The loonie dropped to 1.2897 against the greenback, its weakest
since April 3. The next possible support for the loonie is seen
around the 1.30 area.
The loonie fell to more than a 2-week low of 1.5714 against the
euro, compared to Tuesday's closing value of 1.5696. If the loonie
falls further, it may find support around the 1.58 area.
Figures from Destatis showed that Germany's construction orders
grew notably in February.
New orders in the main construction industry climbed 9.9 percent
month-over-month in February. Orders surged 13.0 percent in
February from a year earlier.
The loonie pared gains to 84.67 against the yen, from a high of
84.99 hit at 9:15 pm ET. The loonie is likely to find support
around the 83.00 level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's all industry activity rebounded at a
slower-than-expected pace in February.
The all industry activity index rose 0.4 percent
month-over-month in February, reversing a 0.1 percent drop in
January. That was just below the expected increase of 0.5
percent.
On the flip side, the loonie rose back to 0.9731 against the
aussie, not far from a 5-day peak of 0.9724 hit at 2:00 am ET. The
loonie is seen finding resistance around the 0.96 level.
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