Canadian Dollar Drops On Falling Oil Prices
March 19 2018 - 12:04AM
RTTF2
The Canadian dollar fell against its most major counterparts in
pre-European deals on Monday, as oil prices dropped on rising
drilling activity in the U.S.
Crude for May delivery fell $0.18 to $62.23 per barrel.
Data from energy services firm Baker Hughes showed that U.S. rig
count rose by four to 800 in the week to March 16.
Investors became cautious ahead of the U.S. Federal Reserve's
highly anticipated monetary policy decision due later in the
week.
With the Fed widely expected to raise interest rates by 25 basis
points, investors are likely to keep an eye on the accompanying
statement for clues about whether the central bank will keep its
current forecast for three rate hikes this year. New Fed Chairman
Jerome Powell's first press conference is also likely to attract
considerable attention.
Meanwhile, Saudi Crown Prince Mohammed bin Salman meets with
President Donald Trump at the White House on Tuesday, with talks
likely to focus on strengthening bilateral ties.
The two-day G20 summit in Buenos Aires starts today, with world
leaders expected to discuss new regulations for
cryptocurrencies.
The loonie weakened to a 16-month low of 80.54 against the yen
and held steady therafter. If the loonie falls further, it may
target support around the 78.00 level.
Preliminary figures from the Ministry of Finance showed that
Japan's exports and imports grew more-than-expected in
February.
The value of exports climbed 1.8 percent year-over-year in
February, faster than the 1.4 percent rise economists had
forecast.
The loonie dropped to 1.3122 against the greenback, a level
unseen since June 2017. The loonie is seen finding support around
the 1.33 level.
The loonie fell back to 1.6090 against the euro, from an early
high of 1.6068. The next possible support for the loonie is seen
around the 1.63 level.
On the flip side, the loonie climbed to a weekly high of 1.0084
against the aussie, compared to last week's closing value of
1.0094. The loonie is likely to challenge resistance around the
0.98 level.
Looking ahead, Eurozone trade data and construction output for
January are set for release in the European session.
At 9:40 am ET, Atlanta Fed President Raphael Bostic speaks about
the future of community development at the National Interagency
Community Reinvestment Conference in Miami.
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