2018.10.1506:26:00UTC+00Canadian Dollar Slides Amid Risk Aversion

The Canadian dollar slipped against its most major counterparts in early European deals on Monday, as rising U.S. interest rates, Brexit uncertainty, growth concerns and the Italy/EU budget row dampened risk sentiment.

A growing feud between the U.S. and Saudi Arabia over the disappearance of a prominent Saudi journalist also dented sentiment.

Amid little positive triggers, traders kept an eye on the EU summit, the release of the minutes of the Federal Reserve's latest monetary policy meeting and a slew of Chinese data, due this week for direction.

The Italian cabinet is set to meet later in the day to approve a 2019 budget targeting a deficit of 2.4 percent, evoking criticism from the European Commission over violating EU fiscal rules.

Meanwhile, oil prices climbed amid growing tensions between the U.S. and Saudi Arabia over the disappearance of a prominent Saudi journalist.

The loonie traded mixed against its major counterparts in the Asian session. While it held steady against the greenback and the aussie, it fell against the euro and the yen.

The loonie declined to a 4-day low of 85.72 against the yen, from a high of 86.19 touched at 10:00 pm ET. The next possible support for the loonie is seen around the 84.00 level.

Having climbed to a 5-day high of 1.5020 against the euro at 5:00 pm ET, the loonie reversed direction and fell to 1.5082. If the loonie drops further, it may find support around the 1.53 area.

Preliminary figures the Federal Statistical Office showed that German manufacturers added more employees during August compared to a year ago.

The number of employees in the manufacturing units with 50 or more persons grew by about 149,000 persons or 2.7 percent from the same period last year to 5.7 million.

The loonie fell to a 2-week low of 0.9295 against the aussie, after rising to a 4-day high of 0.9248 at 8:45 pm ET. The loonie is likely to challenge support around the 0.94 level.

On the flip side, the loonie edged up to 1.3011 against the greenback, reversing from an early low of 1.3033. The loonie is poised to target resistance around the 1.28 area.

Looking ahead, U.S. retail sales for September, business inventories for August as well as Canada existing home sales for September are scheduled for release in the New York session.