Canadian Dollar Weakens On Falling Oil Prices
The Canadian dollar fell against its most major counterparts in
the Asian session on Thursday, as an unexpected build in U.S. crude
inventories and the continued surge in coronavirus cases in some
parts of the world pushed down oil prices.
Crude for June delivery fell $0.23 to $65.09 per barrel.
Data from the Energy Information Administration showed on
Wednesday that U.S. crude inventories rose by 594,000 barrels in
the week to April 16 to 493 million barrels.
Analysts had expected inventories to drop by about 3 million
India recorded 314,835 new infections and 2,104 deaths on
Thursday, forcing authorities in the worst affected state of
Maharashtra to impose additional restrictions.
The Japanese government is considering to issue a third state of
emergency in Tokyo and three western prefectures for about two
Organization of the Petroleum Exporting Countries and allies led
by Russia, known collectively as OPEC+, are preparing for a largely
technical meeting next week, at which the group may stick with the
The loonie fell to 86.26 against the yen and 1.2513 against the
greenback, from yesterday's closing values of 86.44 and 1.2495,
respectively. The loonie may challenge support around 84.00 against
the yen and 1.26 against the greenback.
The loonie edged down to 1.5057 against the euro from
Wednesday's close of 1.5037. On the downside, 1.52 is possibly seen
as its next support level.
In contrast, the loonie was up against the aussie, at 0.9682.
The loonie may test resistance around the 0.95 region.
Looking ahead, the European Central Bank will announce interest
rate decision at 7:45 am ET. The ECB is expected to hold its main
refi rate at a record low zero percent and the deposit rate at
In the New York session, Canada new housing price index for
March, U.S. weekly jobless claims for the week ended April 17 and
existing home sales for March are scheduled for release.
Eurozone flash consumer sentiment index for April is set for
release at 10:00 am ET.