The Canadian dollar slipped against its major counterparts in the European session on Wednesday, as oil prices declined on lingering worries over whether the planned output cuts by the OPEC and Russia would halt oversupply and restore balance in the market.

Crude for January delivery fell $0.48 to $50.45 per barrel.

Both OPEC and Russia have reported record production in November, while Saudi Arabia has cut its selling price of Arab Light crude for Asian consumers in January, casting skepticism about the impact of the OPEC deal that is aimed to rein in supply glut.

OPEC and non-OPEC oil producers will meet in Vienna this weekend to finalize the output deal approved on November 30. The nations have agreed for an overall output reduction of around 1.5 million barrels per day from January 2017.

The Bank of Canada decision is due at 10:00 am ET, with economists expecting the benchmark rate to be kept unchanged at 0.50 percent. The rate has been on hold since July 2015.

Market participants await the monetary policy statement to assess the consequences of protectionist policies proposed by the U.S. President-elect Donald Trump and its risks on trade relations with Canada.

The loonie showed mixed performance in the Asian session. While the loonie rose against the aussie and the yen, it held steady against the euro and the greenback.

The loonie fell to 1.4261 against the euro, off its early high of 1.4210. The loonie may locate support around the 1.45 mark.

Figures from Destatis showed that Germany's industrial production recovered in October.

Industrial production grew 0.3 percent in October from September, when it declined by revised 1.6 percent. Nonetheless, the pace of growth was weaker than the expected 0.8 percent increase.

The loonie pared gains to 1.3287 against the greenback, from a high of 1.3263 hit at 5:00 am ET. The loonie is seen finding support near the 1.35 region.

The loonie reversed from an early session's high of 86.12 against the yen, easing back to 85.79. The next possible support for the loonie-yen pair is seen around the 83.5 mark.

Preliminary figures from the Cabinet Office showed that Japan's leading index increased less-than-expected in October to the highest level in nearly a year.

The leading index rose to 101.0 in October from 100.0 in the previous month, Economists had expected the index to climb to 101.4.

The loonie, having advanced to a 5-day high of 0.9852 against the aussie at 7:45 pm ET, reversed direction and fell back to 0.9909. The loonie may possibly target support near the 1.01 level.

Looking ahead, U.S. crude oil inventories data and consumer credit for October are set to be published in the New York session.

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