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.
The material has been provided by InstaForex Company – www.instaforex.com