Canadian Dollar Falls As Oil Prices Plunge

The Canadian dollar declined against its major counterparts in the European session on Monday amid falling oil prices, as rising coronavirus infections in the United States and elsewhere stoked fears about energy demand.

Crude for July delivery fell $0.82 to $35.44 per barrel.

Weak data from China also stoked worries about the global growth outlook.

Over 25,000 new U.S. cases were reported on Saturday alone as more states reported record new infections and hospitalizations.

Beijing recorded a spate of new covid-19 cases in a major wholesale food market, raising worries about a second wave of coronavirus infections.

Tokyo reported 47 new coronavirus cases on Sunday, the highest since May 5, as the capital eases restrictions and readies to fully reopen the economy.

China's industrial production grew 4.4 percent on a yearly basis in May, faster than the 3.9 percent increase logged in April, data from the National Bureau of Statistics showed. Economists had forecast a 5 percent rise.

Retail sales dropped at a slower pace of 2.8 percent in May from last year, slower than the 7.5 percent decrease seen in April. Sales were forecast to fall 2 percent.

The loonie dropped to 1.5394 against the euro, from a high of 1.5282 seen at 5:00 pm ET. The loonie is poised to challenge support around the 1.55 level.

The loonie fell to a 2-week low of 1.3686 versus the greenback and held steady thereafter. The loonie is seen finding support around the 1.38 level.

The loonie reached as low as 78.32 against the yen and held steady thereafter. The next possible support for the loonie is seen around the 77.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary industry activity declined for the third straight month in April.

Tertiary industry activity decreased 6.0 percent month-on-month in April following a 3.8 percent fall in March.

The loonie pulled back to 0.9316 against the aussie, from an early near 2-week high of 0.9271, and held steady thereafter. On the downside, 0.94 is likely seen as the next support for the loonie.

Looking ahead, Canada manufacturing sales for April and New York Fed's empire manufacturing survey for June are set for release in the New York session.