Canadian Dollar Drops As Oil Prices Decline
January 08 2024 - 4:46AM
RTTF2
The Canadian dollar fell against its most major counterparts in
the European session on Monday amid falling oil prices, as news of
sharp price cuts by top exporter Saudi Arabia and output increases
announced by OPEC offset concerns around the risk of escalation in
the Middle East conflict.
Top oil exporter Saudi Arabia on Sunday cut oil prices to Asian
markets to their lowest level in 27 months amid competition from
rival suppliers and concerns about supply overhang.
Saudi Aramco slashed the official selling price (OSP) for
February-loading Arab Light to Asia by $2 a barrel from January to
$1.50 a barrel over Oman/Dubai quotes.
Meanwhile, Reuters reported that output from the Organization of
the Petroleum Exporting Countries, or OPEC, rose 70,000 barrels per
day (bpd) in December to 27.88 million bpd.
Geopolitical tensions were also on the radar with U.S. Secretary
of State Antony Blinken warning that the conflict in Gaza could
"easily" spill over into a full-blown regional conflict.
Israel struck Hamas and Hezbollah terror facilities in Khan
Yunis and Lebanon in overnight strikes, the Israel Défense Forces
said earlier today.
The loonie fell to 1.3398 against the greenback, down from an
early high of 1.3344. The loonie may possibly face support around
the 1.37 level.
The loonie touched 1.4679 against the euro, its lowest level
since December 29. The loonie is seen finding support around the
1.48 level.
The loonie was trading at 107.82 against the yen. This may be
compared to a previous 4-day low of 107.75. The loonie is poised to
challenge support around the 106.00 level.
In contrast, the loonie climbed to 0.8939 against the aussie, up
from an early 4-day low of 0.8988. It may find resistance around
the 0.87 level.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jul 2024 to Aug 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Aug 2023 to Aug 2024