Canadian Dollar Declines On Falling Oil Prices

The Canadian dollar drifted lower against its major counterparts in the European session on Wednesday, as oil prices dropped after Iran nuclear talks opened the possibility of an easing of sanctions on its oil exports.

Crude for June delivery fell $0.26 to $62.48 per barrel.

Iran said talks in Vienna on Tuesday aimed at restoring its 2015 nuclear deal with world powers had been "constructive" and they will continue to discuss ways to revive the Joint Comprehensive Plan of Action (JCPOA) that former U.S. President Donald Trump unilaterally abandoned in May 2018.

"The talks in Vienna were constructive … our next meeting will be on Friday," Abbas Araghchi, who is leading the Iranian delegation in Vienna, told Press TV.

Data from Statistics Canada showed that Canada's merchandise trade surplus fell in February.

The trade surplus dropped to C$1.04 billion in February from a revised C$1.21 billion in the previous month.

The loonie slipped to an 8-day low of 1.2634 against the greenback, 9-day low of 86.85 against the yen and near a 4-week low of 1.5034 against the euro, off its early highs of 1.2562, 87.38 and 1.4914, respectively. The loonie is seen finding support around 1.29 against the greenback, 84.00 against the yen and 1.52 against the euro.

The loonie fell back to 0.9640 against the aussie, not far from the Asian session's fresh 2-week low of 0.9651. If the loonie slides further, 0.98 is likely seen as its next support level.

Looking ahead, the U.S. consumer credit for February will be released in the New York session.

The Fed minutes from the March 16-17 meeting are set for release at 2:00 pm ET.