(RTTNews) - The loonie dipped to weekly lows against the euro and greenback on Wednesday in New York. Traders weighed Prime Minister Stephen Harper's threats to suspend Parliament to ward off being defeated by a united opposition coalition.

Harper may suspend the Canadian Parliament after the main opposition party, the Liberal Party, agreed two days ago to form a pact with the New Democratic Party and would have the backing of the separatist Bloc Quebecois. The group could replace Harper's Conservative Party as soon as next week.

Crude oil inventories were unexpectedly lower in the recent week, according to data released Wednesday morning by the Energy Information Administration. The draw was the first in 10 weeks for crude stockpiles. Gasoline inventories also dropped.

Crude oil prices saw little immediate impact from the data. Light sweet crude for January delivery moved to $47.28, up 32 cents on the session. Prices inched as high as $48.10 immediately following the EIA report.

The Canadian dollar dropped to a fresh weekly low versus the U.S. dollar on Wednesday. The loonie declined to 1.2667 by 9:00 am ET, down from 1.2480 in the early morning. Investors pondered reports showing U.S. employment fell more than expected in November.

The loonie slid to a weekly low against the euro on Wednesday. The Canadian dollar slipped to 1.5988 just after 10:00 am ET, down from a mid-morning high of 1.5799. Traders digested a report showing Euro zone retail sales declined more than expected in October.

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