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Canadian Dollar Slides As Oil Prices Fall

The Canadian dollar drifted lower against its key counterparts in the European session on Thursday, as oil prices declined following a build in U.S. oil inventories last week.

Data from the Energy Information Administration on Wednesday showed crude supplies in the U.S. increased by 7 million barrels last week, significantly larger than the expected rise.

The report said U.S. crude stockpiles rose to their highest level since November 2017 amid record production.

On Tuesday, the American Petroleum Institute released a report showing a 4.1 million barrels jump in crude stockpiles last week.

In its monthly report, the International Energy Agency said that there are still "mixed signals" over the outlook for oil consumption and stock levels.

The IEA kept its estimates for global oil demand unchanged in 2018 and 2019, but warned "risks are currently to the downside".

The currency has been trading in a negative territory against its major counterparts in the Asian session.

The loonie declined to 83.16 against the yen, its weakest since April 1. This follows a high of 83.39 hit at 8:30 pm ET. The loonie is poised find support around the 82.00 level.

The Canadian currency fell to a 3-day low of 1.3361 against the greenback from yesterday's closing value of 1.3317. The loonie is seen finding support around the 1.35 level.

The loonie that closed yesterday's trading at 0.9549 against the aussie slipped to a 2-1/2-month low of 0.9565. The next possible support for the loonie is seen around the 0.965 level.

On the flip side, the loonie trimmed its early losses against the euro with the pair trading at 1.5056. The currency had set near a 2-week low of 1.5068 against the euro at 3:45 am ET. If the loonie rises further, 1.48 is possibly seen as its next resistance level.

Preliminary data from Eurostat showed that Eurozone house price inflation slowed in the fourth quarter of 2018 after remaining unchanged in the previous three months.

House prices rose 4.2 percent year-on-year following a 4.3 percent increase in each of the previous two quarters. In the first quarter, prices grew 4.5 percent.

Looking ahead, Canada house price index for February, U.S. weekly jobless claims for the week ended April 6 and producer prices for March are due in the New York session.

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