(RTTNews) - The Canadian dollar slipped against the currencies of U.S., Europe and Japan in early European deals on Monday on the back of a slide in crude oil price.
Oil prices fell amid renewed worries over Europe's debt problems and on concerns over a slowdown in oil demand after U.S. President Barack Obama warned of another financial crisis in case the official debt ceiling is not raised. Oil is now down 1.24 percent at $98.41 per barrel.
The arrest of International Monetary Fund Managing Director Dominique Strauss-Kahn on charges of sexual assault over the weekend also hurt investors' sentiment.
Crude oil prices surged higher on Friday, due largely to some hectic short-covering. Light, sweet crude for June delivery ended up 68 cents at US$99.65 a barrel on the New York Mercantile Exchange.
The Canadian dollar is now worth 0.9740 against the US dollar, compared to Friday's close of 0.9697. The next downside target level for the loonie is seen at 0.980.
The Canadian dollar that rose to a 4-day high of 1.3642 against the euro in early Asian deals moved sideways in the latter part of the session, but it fell in early European trading. As of now, the loonie is worth 1.3750 per euro with 1.379 seen as the next downside target level. The euro-loonie pair closed Friday's trading at 1.3674.
Eurozone annual inflation rose to 2.8 percent in April, the highest level since October 2008. The statistical office confirmed the flash estimate published on April 29. In March, the inflation rate was 2.7 percent.
Monthly inflation in April was 0.6 percent, in line with economists' expectations.
Another report from the Eurostat showed that the Eurozone trade surplus for March was bigger than expected. The non-seasonally adjusted trade surplus rose to EUR 2.8 billion from EUR 2.7 billion in the same month last year. Economists had forecast an excess of EUR 2 billion.
At present, the Canadian dollar is worth 83.0 against the yen, down from Friday's close of 83.45. If the loonie slides further, it may likely target the 82.8 level.
Japan's consumer sentiment index dipped to 33.1 from 38.6 in March, survey results from the Cabinet Office showed today. The consensus forecast called for a reading of 36.7 for April. At the same time, households' consumer sentiment came in at 33.4, down from 38.3 in March.
Investors now focus on the New York session, in which the U.S. NAHB housing market index for May, Treasury Department's report on the flows of financial instruments into and out of the U.S. for March and the results of the New York Federal Reserve's empire state manufacturing survey for May are slated for release.
