Canadian dollar falls on lower oil prices

CANBERA (dpa-AFX) – The Canadian dollar fell against its major counterparts during the New York session on Tuesday as OPEC’s oil demand forecast cut weighed on oil prices.

In its monthly report, OPEC forecast global oil demand to increase by 2.03 million barrels per day in 2024, down from its previous forecast of 2.11 million barrels per day.

The rating downgrade was driven by lower demand growth from China.

Changing trends in global trade could push up prices and increase inflation volatility, Bank of Canada Governor Tiff Macklem said.

“Trade disruptions could lead to larger deviations of inflation from the 2% target,” Macklem said, adding that supply shocks pose problems for central banks and that they “cannot stabilize growth and inflation at the same time.”

The loonie fell to 1.5007 against the euro and 104.60 against the yen, from previous highs of 1.4960 and 105.90 respectively. The currency is likely to challenge support around 1.52 against the euro and 102.5 against the yen.

The loonie hit a 3-week low of 1.3615 against the greenback. Immediate support for the coin is seen around the 1.38 level.

The loonie traded at 0.9047 against the Aussie, down from a near four-week high of 0.9018. The currency is expected to find support around the 0.92 level.

Copyright(c) 2024 RTTNews.com. All rights reserved.

Copyright RTT News/dpa-AFX