Canadian Dollar Falls On Weakening Oil Prices
January 17 2019 - 2:20AM
RTTF2
The Canadian dollar declined against its major opponents in the
European session on Thursday, as data showing a record crude
production raised worries over a global supply glut.
Crude for March delivery fell $0.81 to $51.80 per barrel.
The Energy Information Administration reported on Wednesday that
American crude oil production reached a record 11.9 million bpd in
the week ending Jan. 11, just as worries about weakening demand
emerge. That was up from 11.7 million bpd last week.
The EIA also said gasoline stockpiles climbed 7.5 million
barrels last week, stoking fears of weak demand in the U.S.
Distillate stockpiles rose by 3 million barrels.
Risk aversion triggered by trade worries resurfaced and French
bank Societe Generale warned that its fourth quarter was affected
by tough market conditions.
U.S.-China trade tensions resurfaced after media reports
suggested the U.S. authorities are in advanced stages of probing
criminal charges against Huawei for alleged theft of trade.
The currency has been trading in a negative territory against
its most major rivals in the Asian session, barring the aussie.
The loonie dropped to 81.70 against the yen, following an
advance to 82.33 at 5:45 pm ET. The loonie is likely to challenge
support around the 80.5 area.
The loonie weakened to 1.3309 against the greenback, its lowest
level since January 8. If the loonie falls further, 1.35 is
possibly seen as its next support level.
The loonie declined to a 2-day low of 1.5152 against the euro,
reversing from a high of 1.5094 touched at 5:00 pm ET. On the
downside, 1.53 is likely seen as the next support for the
loonie.
Data from the Eurostat showed that Eurozone inflation slowed as
initially estimated in December.
Consumer prices rose 1.6 percent year-on-year, same as in
November. The reading matched flash estimate.
Pulling away from a weekly high of 0.9498 against the aussie,
the loonie depreciated to 0.9521. The loonie is seen finding
support around the 0.97 level.
Data from the Australian Bureau of Statistics showed that
Australia home loans fell a seasonally adjusted 0.9 percent on
month in November - coming in at 51,967.
That beat forecasts for a decline of 1.5 percent following the
2.2 percent jump in October.
Looking ahead, U.S. weekly jobless claims for the week ended
January 12, housing starts and building permits for December are
scheduled for release in the New York session.
At 10:45 am ET, Federal Reserve Governor Randal Quarles will
deliver a speech at the Insurance Information Institute's annual
forum in New York.
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