EURCAD Euro vs Canadian Dollar

The Canadian dollar declined against its major rivals in European deals on Thursday, as oil prices continued their sell-off on concerns over a supply glut following a data showing uptick in U.S. crude oil inventories last week.

Crude oil for March delivery fell by $0.10 to $44.35 per barrel.

Weekly report from the U.S. Energy Information Administration showed Wednesday that U.S. crude oil inventories advanced by 8.9 million barrels in the week ended January 23, while analysts expected an increase of 3.5 million barrels. As a result, U.S. crude oil inventories surged to 406.7 million barrels end last week.

The American Petroleum Institute late Tuesday said crude oil supplies in the U.S. rose 13 million barrels last week.

The currency was also hurt by decline in European stocks. The U.S. Federal Reserve indicated that it is on track to raise short-term interest rates later this year, despite weakness in oil prices and inflation expectations.

Investors are also concerned about Syriza's pledge to renegotiate the terms of Greece's €240 billion international bailout.

The loonie weakened to 1.2562 against the greenback, its lowest since March 2009, from yesterday's closing value of 1.2534. The next possible support for the loonie is seen around the 1.264 zone.

The loonie that ended yesterday's trading at 1.4147 against the euro slipped to a weekly low of 1.4222. Next key support for the loonie is seen around the 1.43 area.

Survey data from the European Commission showed that the economic confidence index climbed to 101.2, the highest since July, from 100.6 in December. It was forecast to rise to 101.6. The loonie held in lower ranges against the yen, trading at 93.91. Continuation of the loonie's downtrend may lead it to a support around the 92.00 region.

Retail sales in Japan rose 0.2 percent on year to 13.524 trillion yen in December, the data from Ministry of Economy, Trade and Industry showed.

That missed forecasts for an increase of 0.9 percent and was down from the 0.5 percent gain in November.

On the flip side, the loonie strengthened to a 2-week high of 0.9763 against the aussie. At yesterday's close, the pair was valued at 0.9883. The loonie may challenge resistance surrounding the 0.97 mark.

Looking ahead, preliminary German CPI for January, U.S. pending home sales data for December and U.S. weekly jobless claims for the week ended January 24 are scheduled for release in the New York session.

At 11:30 am ET, European Central Bank Executive Board member Benoit Coeure will take part in a panel discussion on "The future of Euro" organized by the Innocenzo Gasparini Institute for Economic Research and Centre for Applied Research at Bocconi University in Milan, Italy.

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