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Canadian dollar falls amid falling oil prices

The loonie fell against its major counterparts in the Asian session on Thursday, as an unexpected increase in US crude oil inventories and an ongoing surge in coronavirus cases in some parts of the world pushed oil prices down.

Crude for June delivery fell $ 0.23 to $ 65.09 a barrel.

Energy Information Administration data showed Wednesday that US crude oil inventories rose 594,000 barrels in the week of April 16 to 493 million barrels.

Analysts had expected stocks to fall by about 3 million barrels.

India reported 314,835 new infections and 2,104 deaths on Thursday, forcing the authorities in the hardest-hit state of Maharashtra to impose additional restrictions.

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The Japanese government is considering a third state of emergency in Tokyo and the three western prefectures for about two weeks.

The Russian-led Organization of Petroleum Exporting Countries and Allies, known collectively as OPEC +, is preparing to meet next week, at which the group may decide to stick to its current strategy.

The loonie fell to 86.26 against the yen and 1.2513 against the US dollar from yesterday’s close of 86.44 and 1.2495, respectively.

The loonie may find support at 84.00 against the yen and 1.26 against the US dollar.

The loonie was down to 1.5057 against the euro since Wednesday’s close at 1.5037. 1.52 may be seen as its next support level.

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Meanwhile, the Canadian currency climbed to 0.9682 against the Australian dollar. The Canadian dollar may test resistance in the 0.95 region.

The European Central Bank will announce its interest rate decision at 7:45 am ET. The ECB is expected to keep its key refinancing rate at a record low zero and its deposit rate at -0.50%.

The New York session is slated to release Canada’s March New Home Price Index and weekly US jobless claims for the week ending April 17.

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