The Canadian dollar fell against most major rivals in early European deals on Friday, amid a decline in oil prices following rising crude oil inventories last week and on caution ahead of the Federal Reserve meeting due next week.
Crude for October delivery fell $0.74 to $45.18 a barrel.
Data from the U.S. Energy Information Administration showed on Thursday that crude stockpiles in the U.S. increased 2.6 million barrels in the week ended August 28, while analysts anticipated an increase of 0.3 million barrels. Total U.S. crude stockpiles aggregated 458.0 million barrels end last week, at levels not seen for this time of year in the last 80 years.
Caution crept in ahead of the Fed’s September 16-17 meeting, as uncertainty prevails over whether the Fed will raise its federal funds rate or delay the tightening for a later date. Investors eye U.S. wholesale inflation and consumer sentiment data later in the day to see if the American economy is resilient enough to absorb higher interest rates.
Focus also shift towards a slew of China data scheduled for release over the weekend, amid worries over the state of economy.
The loonie showed mixed performance in the previous session. While the loonie held steady against the greenback and the euro, it was higher against the aussie and the yen.
In European deals, the loonie fell to a new 2-week low of 1.5012 versus the euro, compared to 1.4944 hit late New York Thursday. The loonie is likely to find support around the 1.51 mark.
The loonie dropped to 1.3275 against the greenback, off its previous high of 1.3216. The pair was quoted at 1.3250 when it ended Thursday’s trading. The next key support for the loonie may be located around the 1.35 region.
The loonie pared gains to 90.67 against the yen, from its previous session’s high of 91.43. At yesterday’s close, the pair was worth 91.02. On the downside, the loonie-yen pair may find support around the 89.00 level.
On the flip side, the loonie has been higher against the aussie, trading at 0.9335. The loonie ended yesterday’s trading at 0.9366 against the aussie.
Looking ahead, at 7:30 am ET, Bank of England’s Monetary Policy Committee member Kristin Forbes will give keynote speech at the 47th annual Money, Macro and Finance Research Group conference at Cardiff Business School, England.
Fifteen minutes later, European Central Bank Supervisory Board Chair Daniele Nouy is expected to speak at Corporate Program Roundtable in New York, U.S.
In the New York session, U.S. PPI for August and U.S. University of Michigan’s preliminary consumer sentiment index for September are due.
At 2:00 pm ET, U.S. Treasury department releases Federal budget statement for August.
The material has been provided by InstaForex Company – www.instaforex.com