Forex News: Canadian Dollar Falls As Oil Prices Tumble

Canadian Dollar Falls As Oil Prices Tumble

(RTTNews) - The Canadian dollar weakened against other major currencies in the European session on Thursday, as the crude oil prices fell for the first time in six days amid easing geopolitical tensions.

Benchmark Brent crude futures fell nearly 3 percent to $64.53 a barrel while WTI crude futures were down 3.1 percent at $60.12.

Fears of an imminent U.S. action against Iran ebbed as U.S. President Donald Trump appeared to soften rhetoric against Iran.

Trump said he had received information "on good authority" that Iran has stayed fast trials and executions of protesters, signaling he may hold off on attacking the country for now.

Iran, however, has pushed back, threatening to strike U.S. military bases and Israel if Washington interferes.

Meanwhile, Danish foreign minister Lars Lokke Rasmussen said that discussions at the White House with U.S. vice-president J.D. Vance and secretary of state Marco Rubio were "frank but constructive", stressing that any proposal undermining Danish sovereignty or Greenland's right to self-determination was "totally unacceptable".

U.S. control of Greenland is "vital" for the country's planned Golden Dome air and missile defense system, Trump said in a social media post.

Elsewhere, the U.S. Senate on Wednesday voted against a resolution that was aimed at curbing President Trump's authority to launch strikes on Venezuela.

Vice President JD Vance cast the tie-breaking vote on a point of order that halted the war powers resolution.

Additionally, the worsening employment market has led to predictions of a short-term interest rate drop by the Bank of Canada, which has kept the Canadian dollar (CAD) relatively weak.

Last week, Statistics Canada revealed that the unemployment rate had risen from 6.5% to 6.8% in December.

In the European trading today, the Canadian dollar fell to a 3-day low of 1.3908 against the U.S. dollar, from an early high of 1.3885. The loonie may test support near the 1.40 region.

Against the yen and the Australian dollar, the loonie dropped to 2-day lows of 113.86 and 0.9314 from early highs of 114.20 and 0.9265, respectively. If the loonie extends its downtrend, it is likely to find support around 112.00 against the yen and 0.94 against the aussie.

The loonie edged down to 1.6184 against the euro, from an early high of 1.6158. On the downside, 1.62 is seen as the next support level for the loonie.

Looking ahead, Canada manufacturing sales data, new motor vehicle sales data and wholesale sales data, all for November, U.S. export and import prices for November and U.S. weekly jobless claims data are slated for release in the New York session.

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