During early European deals on Wednesday, the Canadian dollar fell sharply against its major counterparts as the crude oil prices fell for a second day, heading for a record annual drop, on speculation that U.S. fuel stockpiles are increasing as the recession cuts demand. The loonie dropped from a 2-day high against the greenback during this time.
At about 4:21 a.m. ET, U.S. crude fell 74 cents to $38.29 a barrel, while London Brent dropped 59 cents to $39.56, after sliding more than $1.00 earlier. Prices are down 60 percent this year, the first annual drop since 2001 when oil fell 26 percent, and the biggest decline since trading began in 1983.
The Canadian dollar, which closed yesterday's trading at 74.36 against the yen slipped to 73.72 during early deals on Wednesday. The next downside target level for the loonie-yen pair is seen at 73.1.
In early trading on Wednesday, the Canadian dollar declined to 0.8479 against the Aussie. This may be compared to Tuesday's closing value of 0.8418. If the loonie weakens further, it is likely to target a 3-month low of 0.855.
Against the European currency, the Canadian dollar strengthened to 1.7081 before losing ground at 3:55 am ET Wednesday. The euro-loonie pair that closed yesterday's trading at 1.7113 is now worth 1.7230. The near term support level for the Canadian currency is seen at 1.751.
The Canadian dollar dropped to 1.2253 against the US currency by about 4:15 am ET Wednesday, compared to a 2-day high of 1.2110 hit in early Asian deals today. On the downside, 1.234 is seen as the next target level for the loonie. The greenback-loonie pair closed Tuesday's North American session at 1.2162.
Investors now look forward to the New York session, in which the US Labor Department is due to release its customary weekly jobless claims report for the week ended December 27th at 8:30 am ET.
Jobless claims rose 30,000 to 586,000 in the week ended December 20th from an upwardly revised figure of 556,000 for the previous week. Economists had expected jobless claims to edge up to 558,000 from the 554,000 originally reported for the previous week.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.