The Canadian dollar fell against its most major rivals in European deals on Friday, as oil prices slipped after weak PMI reports from Eurozone and China, and as concerns over supply glut weighed.
Crude for February delivery fell $0.81 to $52.46 per barrel.
Eurozone’s manufacturing activity grew at a slower-than-estimated rate in December, final figures from Markit Economics showed.
The final Eurozone Manufacturing Purchasing Managers’ Index, or PMI, edged up to 50.6, less than the 50.8 score estimated initially, from 50.1 in November.
China’s official measure of manufacturing activity grew at a slower pace in December, adding to signs of slowdown in the world’s second largest economy.
The CFLP Manufacturing Purchasing Managers’ Index fell to 50.1 from 50.3 in November, data from the National Bureau of Statistics showed Thursday. The index eased for the third month in a row, yet a score above 50 signals expansion in activity.
The fire at oil storage tanks at al-Sidra oil port in eastern Libya have been extinguished, Libyan official said. The fire was sparked during fighting between government forces and rival insurgents, when missile hit the al-Sidra oil export terminal on December 25.
The loonie dropped to 1.4076 against the euro and 103.08 against the yen. The next possible downside target for the loonie may be found around 1.425 against the euro and 102.00 against the yen.
The loonie hit 1.1695 against the U.S. dollar, a 5-1/2-year low. Continuation of the loonie’s downtrend may lead it to a support around the 1.18 mark.
After edging up to a multi-day high of 0.9456 against the aussie at the beginning of today’s trading, the loonie eased during early European deals and was steady thereafter. The pair was valued at 0.9483.
Looking ahead, the U.S. ISM manufacturing for December and construction spending for November and Markit’s final manufacturing PMI for December are set for release shortly.
