Canadian Dollar Drops As Oil Prices Dip

The Canadian dollar weakened against its major counterparts in the New York session on Friday, as oil edged lower on China demand concerns.

Oil prices came under pressure due to concerns about a slowdown in Chinese growth and expectations of a ceasefire deal for the Gaza war and related violence in the Middle East.

Data released earlier this week showed China's apparent oil demand fell 8.1 percent to 13.66 million barrels per day in June, prompting concerns about consumption.

Elsewhere, United States Vice President Kamala Harris and the presumptive Democratic nominee after President Joe Biden's decision to end his re-election campaign has pledged not to stay "silent" about suffering in Gaza, raising hopes of an end to the war.

Speaking to reporters after a meeting with Israeli Prime Minister Benjamin Netanyahu in Washington on Thursday, Harris said that her commitment to Israel's existence and security was "unwavering", but that "far too many" innocent civilians had been killed in the war.

Harris said that she had urged Netanyahu to agree to a U.S.-backed ceasefire proposal that would ease the suffering of Palestinian civilians.

The loonie fell to 1.3849 against the greenback and 0.9079 against the aussie, off its early highs of 1.3807 and 0.9034, respectively. The loonie is likely to challenge support around 1.39 against the greenback and 0.93 against the aussie.

The loonie touched more than an 8-month low of 1.5035 against the euro. The loonie is seen finding support around the 1.52 level.

Against the yen, the loonie edged down to 110.73, from an early 2-day high of 111.98. The currency is poised to challenge support around the 106.00 level.