The Canadian dollar declined against the other major currencies in early European deals on Thursday, as oil prices declined on a higher dollar, after the Federal Reserve signaled about the possibility of rate hike at December meeting.
Crude for December delivery fell $0.58 to $45.36 a barrel.
A higher dollar makes dollar-priced commodities more expensive for holders of other currencies.
In its latest statement, the Fed removed language expressing concern about the global economy and has signaled that a rate hike is still possible at ‘next meeting’ in December.
Data from the Energy Information Administration showed Wednesday that oil inventories rose by 3.4 million barrels to a total of 480 million barrels in the week ended October 23. This was down from expectations for a gain of 3.75 million barrels. The EIA also said that gasoline and distillate inventories fell more than expected.
The currency has been modestly down against the yen, aussie and the euro in Asian trading. Against the greenback, it was steady.
In European trades, the loonie fell to 91.26 against the yen and 1.3229 against the greenback, reversing from its early highs of 91.81 and 1.3185, respectively. On the downside, the loonie may locate support around 90.00 against the yen and 1.34 against the greenback.
The loonie came off from its early highs of 1.4385 against the euro and 0.9360 against the aussie, edging down to 1.4457 and 0.9406,respectively. The loonie is seen finding support around 1.46 against the euro and 0.96 against the aussie.
Looking ahead, U.S. weekly jobless claims for the week ended October 24, the first estimate third quarter U.S. GDP data, pending home sales data for September, Canada industrial product and raw materials price indexes for September and preliminary German CPI data for October are slated for release in the New York session.
At 9:10 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart will deliver opening remarks at the Workforce Development Panel Discussion, in Washington DC.
At 10:00 am ET, European Central Bank Vice President Vitor Constancio is expected to speak on “The Role of Stress Testing in the European Central Bank’s Policy Framework” at a conference on “Stress Testing and Macro-prudential Regulation: A Transatlantic Assessment”, in London.
The material has been provided by InstaForex Company – www.instaforex.com