Canadian Dollar Down As Oil Prices Decline
29 April 2015 - 2:32PM
RTTF2
The Canadian dollar declined against its major rivals in
European deals on Wednesday, as European markets and oil prices
fell ahead of the latest monetary policy decision from the Federal
Reserve.
Crude for June delivery fell $0.33 to $56.73 per barrel.
Markets are hoping for clarity on the Fed's outlook for raising
interest rates at 2 pm ET.
Data from American Petroleum Institute showed late Tuesday that
crude supplies rose 4.2 million barrels for the week ended April
24. The U.S. Energy Information Administration will come out with
its weekly inventory data today, with analysts expecting an
increase of 2.8 million barrels stockpiles last week.
Meanwhile, Saudi King Salman bin Abdulaziz repositioned power
among the royal family members.
The king elevated Mohammed bin Nayef to the post of crown price
and named his son Mohammed bin Salman as second in line to the
throne. The king's brother Prince Muqrin was relieved from the post
of crown price, according to the statement. The reshuffle come as
Saudi heads a military campaign against Yemen's Houthi rebels and
face a plunge in oil prices.
The loonie was trading higher against the yen, greenback and the
aussie in the previous session. Against the euro, the loonie held
steady.
The loonie retreated to 1.2072 against the greenback and 98.81
against the yen, reversing from early more than 3-month highs of
1.2012 and 99.15, respectively. If the loonie extends fall, it may
find support around 1.21 against the greenback and 98.00 against
the yen.
The loonie declined to a 2-week low of 1.3285 against the euro,
after having advanced to 1.3189 at pm ET. The next possible support
for the loonie may be located around the 1.34 area.
After climbing to 0.9599 against the aussie in early deals, the
loonie eased back to 0.9645. The loonie is likely to challenge
support around the 0.97 mark.
Looking ahead, Canada industrial product price and raw materials
price indices for March, U.S. first quarter GDP data and U.S.
pending home sales data for March are set to be published in the
New York session.
At 2:00 pm ET, Federal Reserve will announce its decision on
monetary policy. The Fed is expected to hold rates at 0.25
percent.
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