Canadian Dollar Declines On Falling Oil Prices

The Canadian dollar drifted lower against its major counterparts in pre-European deals on Friday, as oil prices declined amid skepticism over whether the OPEC deal agreeing for modest production cuts would address massive supply glut.

Crude for November delivery declined $0.46 to $47.37 per barrel.

The OPEC deal, aiming to hold output between 32.5 million and 33 million barrels a day, is expected to be finalized on November 30. But, with OPEC production near record high, traders have doubts over whether the planned output cut would make a significant dent in global oil glut.

The deal lack too many details, including the quota of oil production cut among member nations, which should be finalized at a formal OPEC meeting in November.

Meanwhile, Asian shares declined on rising worries about the financial health of German lender Deutsche Bank.

Bloomberg reported Thursday that several hedge funds have withdrawn excess cash and positions held at Deutsche Bank. Europe's largest investment bank has been under pressure after the U.S. Justice Department asked it to pay a $14 billion fine to settle civil claims related to its residential mortgage-backed securities.

The loonie showed mixed trading in the Asian session. While the loonie rose against the aussie and the yen, it was modestly lower against the euro and the greenback.

The loonie that ended yesterday's trading at 1.4749 against the euro dropped to a 2-day low of 1.4780. Continuation of the loonie's downtrend may see it challenging support around the 1.50 zone.

Data from Destatis showed that Germany's retail sales decreased at a faster-than-expected pace in August, after rising in the previous month.

Retail sales fell a calendar and seasonally-adjusted 0.4 percent month-over-month in August, exceeding economists' expectations for a 0.2 percent drop.

The loonie weakened to a 2-day low of 1.3195 against the greenback, down from Thursday's closing value of 1.3145. If the loonie extends slide, 1.33 is possibly seen as its next support level.

Pulling away from an early high of 77.35 against the Japanese yen, the loonie fell to a 2-day low of 76.37. The loonie is seen finding support around the 75.00 mark.

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts grew for the second straight month in August, though at a slower-than-expected pace.

Housing starts rose 2.5 percent year-over-year in August, much slower than July's 8.9 percent spike. That was also well below the 7.1 percent rise expected by economists.

Meanwhile, the loonie firmed to a 4-day high of 1.0012 against the aussie, compared to yesterday's closing value of 1.0033. On the upside, the loonie is likely to target resistance around the 0.98 region.

Data from the Reserve Bank of Australia showed that Australia's private sector credit grew 0.4 percent on month in August.

That was unchanged from the July reading, although it missed forecasts for 0.5 percent.

Looking ahead, Eurozone unemployment rate for August and CPI data for September are slated for release shortly.

In the New York session, Canada GDP data for August, Canada industrial and raw materials products price indexes for August, U.S. personal income and spending data for August, U.S. University of Michigan final consumer sentiment index for September, U.S. Chicago purchasing manager index for September and U.S. Baker Hughes rig count data are set to be announced.

At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in a moderated Q&A session before the Stemmons Corridor Business Association 35th Annual Meeting, in Dallas, United States.