Canadian Dollar Falls On Declining Oil Prices

The Canadian dollar slipped against its major counterparts in the early European session on Tuesday, as oil prices weakened following remarks from Russian finance minister Anton Siluanov suggesting an increase in oil production of the nation and OPEC to combat market share with America.

Crude for May delivery fell $0.06 to $63.34 per barrel.

Over the weekend, Siluanov remarked that Russia along with OPEC is likely to decide to boost production to fight for market share with the United States.

Investors await weekly crude oil inventory report from the American Petroleum Institute later in the day for directional clues. In the previous week, U.S. oil inventories showed a build of 4.091 million barrels for the week ended April 5.

U.S. earnings news remain in focus, with Bank of America (BAC), Johnson & Johnson (JNJ) and UnitedHealth (UNH) among the companies due to report their quarterly results later today.

The loonie fell to a 3-week low of 1.5154 against the euro, from a high of 1.5108 hit at 5:00 pm ET. The next possible resistance for the loonie is seen around the 1.53 level.

Having advanced to 1.3366 against the greenback at 5:00 pm ET, the loonie reversed direction and declined to an 11-day low of 1.3403. If the loonie rises further, 1.36 is possibly seen as its next resistance level.

The loonie weakened to a 4-day low of 83.48 against the yen, following a high of 83.81 seen at 5:00 pm ET. The loonie is poised to find resistance around the 82.00 level.

On the flip side, the loonie appreciated to 0.9561 against the aussie, from an early low of 0.9596 and held steady thereafter. The pair ended Monday’s trading at 0.9588.

Looking ahead, U.K. ILO jobless rate for February ad German ZEW economic sentiment index for April are due in the European session.

In the New York session, Canada manufacturing sales for February, U.S. industrial production for March and NAHB housing market index for April are set for release.

The material has been provided by InstaForex Company –

Source:: Canadian Dollar Falls On Declining Oil Prices

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