The Canadian dollar showed mixed performance against its major rivals in early deals on Wednesday. While the loonie edged higher against the greenback and yen, it drifted lower against the euro.
The price of crude oil, Canada's key export, was little changed today as traders await cues from the outcome of the meeting this week of the producer group OPEC and the weekly petroleum inventory report from the U.S. Energy Information Administration this morning.
Earlier today, the IEA, in its monthly Oil Market Report, nudged down its 2012 oil demand growth forecast to 89.90 mbd, citing uncertainty over summer power sector oil demand and non-OECD stockpiling.
Light Sweet Crude Oil (WTI) futures for July eased $0.21 to $83.11 a barrel. Yesterday, oil snapped its three-session losing streak as traders were swayed by hopes of further quantitative easing as euro zone woes continued unabated with yields on Spanish and Italian bond surging to record levels.
Tuesday after the market hours, the API said U.S. crude oil inventories rose unexpectedly by 1.6 million barrels, while gasoline stocks dipped 878,000 barrels in the weekended June 08.
The Canadian dollar fell as low as 1.2880 against the euro before leveling off around 5:35 am ET. The euro-loonie pair is presently worth 1.2870 with 1.2890/1.29 seen as the next likely resistance level and 1.2800/10 seen as the probable support.
The common currency climbed after a report showed that the euro zone industrial production declined in April at a slower than expected pace. Industrial production logged a monthly fall of 0.8 percent in April after easing 0.1 percent in March. The decline was smaller than economists' expectations for a 1.2 percent drop.
Meanwhile, Germany's harmonized consumer prices rose more than initially estimated in May, final data from the Federal Statistical Office revealed. EU harmonized inflation came in at 2.2 percent in May, revised up from the prior estimate of 2.1 percent. The rate was thus unchanged from the 2.2 percent seen in April.
The Canadian dollar climbed to a 2-day high of 77.76 against the yen and 1.0251 against the greenback by 7:00 am ET. The loonie is presently worth 1.0260 against the US dollar and 77.66 against the yen with 1.0215 and 78.10, respectively seen as the next likely upside target levels.
Core machine orders in Japan climbed a seasonally adjusted 5.7 percent on month in April to a value of 788.6 billion yen. The headline figure blew away forecasts for an increase of 1.6 percent following the 2.8 percent contraction in March and the 2.8 percent gain in February. Core machine orders rose for the fourth time in five months.
South of the boarder, the US retail sales, PPI-both for May and the business inventories report for April are expected to influence trading in the upcoming North American session.
by RTT Staff Writer
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