Forex News: Canadian Dollar Falls As Crude Oil Prices Slide

Canadian Dollar Falls As Crude Oil Prices Slide

(RTTNews) - The Canadian dollar weakened against other major currencies in the Asian session on Friday, as oil prices declined following the US blacklisting of Rosneft and Lukoil.

Following the US blacklisting of Rosneft PJSC and Lukoil PJSC, Chinese state-owned enterprises, including SinOpec, canceled some imports of seaborne Russian crude, further indicating market disruption.

After three days of advances, the price of West Texas Intermediate (WTI) oil depreciates at about $61.00 per barrel.

However, growing supply fears brought on by recent US sanctions on Russia's two largest oil companies, Rosneft and Lukoil, may limit the decline in crude oil prices.

On October 30, U.S. President Donald Trump will meet with Chinese leader Xi Jinping to resolve tariff issues, the White House said.

Meanwhile, optimism about interest rate cut by the US Fed later this week is aiding market sentiment.

Amid the current U.S. government shutdown and ensuing data blackout, traders take a cautious approach ahead of the US inflation data for September, which is due later in the day. The data could have an impact on the outlook for interest rates ahead of the US Fed's monetary policy meeting later in the week.

According to CME Group's FedWatch Tool, investors are betting on 98.9% chances of a 25-basis-point interest rate cut in the upcoming October 28-29 Federal Reserve's meeting.

In the Asian trading today, the Canadian dollar fell to a 3-day low of 1.6285 against the euro and a 2-day low of 1.4029 against the U.S. dollar, from yesterday's closing quotes of 1.6249 and 1.3988, respectively. If the loonie extends its downtrend, it is likely to find support around 1.64 against the euro and 1.41 against the greenback.

Against the yen, the loonie dropped to 108.95 from a recent 2-week high of 109.29. On the downside, 107.00 is seen as the next support level for the loonie.

The loonie edged down to 0.9118 against the Australian dollar, from Thursday's closing value of 0.9112. The loonie may test support near the 0.92 region.

Looking ahead, U.S. CPI data for September, U.S. S&P Global PMI data for October, U.S. University of Michigan's consumer sentiment data for October, U.S. new home sales data and U.S. Baker Hughes oil rig count data are slated for release.

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