Canadian Dollar Drops On Weaker Oil Prices

The Canadian dollar weakened against its most major counterparts in the New York session on Monday amid falling oil prices, as U.S. President Joe Biden's exit from the election race sparked political uncertainty.

Amid pressure from party leaders, Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris as the Democratic nominee.

Biden offered his "full support and endorsement" for Kamala Harris and said he would complete his current term.

Later in the week, focus is likely to shift to a report on personal income and spending in June, which includes readings on inflation said to be preferred by the Federal Reserve.

The data could have a significant impact on the outlook for interest rates, with the Fed currently widely expected to lower interest rates by a quarter point in September.

The loonie fell to more than a 5-week low of 1.3775 against the greenback and more than an 8-month low of 1.4986 against the euro, off its early highs of 1.3705 and 1.4931, respectively. The loonie is likely to challenge support around 1.39 against the greenback and 1.51 against the euro.

The loonie declined to a 4-day low of 113.74 against the yen and held steady thereafter. The currency is poised to challenge support around the 109.00 level.

Meanwhile, the loonie climbed to near a 3-week high of 0.9131 against the aussie. If the currency continues its uptrend, 0.90 is possibly seen as its next resistance level.