Canadian Dollar Climbs On Higher Commodity Prices
01 June 2021 - 05:46PM
RTTF2
The Canadian dollar was higher against its major opponents
during the European session on Tuesday, as strong manufacturing
surveys across the globe spurred optimism about a faster recovery,
triggering a rally in commodities.
China's manufacturing sector expanded at a faster pace in May on
robust new orders and production. The Caixin manufacturing
Purchasing Managers' Index rose to 52.0 in May, the highest level
since December and inching up from 51.9 in April.
Eurozone manufacturing activity expanded at a record pace in May
despite supple bottlenecks.
IHS Markit's final Manufacturing Purchasing Managers' Index
(PMI) rose to a new record high of 63.1 in May from April's 62.9.
This was up from a preliminary reading of 62.8.
Oil prices rose on improved oil demand outlook, led by economic
reopenings from coronavirus lockdowns.
Sentiment was also underpinned after the OPEC+ Joint Technical
Committee kept its global oil demand forecast steady amid a robust
recovery in the U.S. and Europe, and reinforced the view that the
market was well-placed to absorb more supply from Iran.
The coalition is expected to ratify a scheduled output increase
for July when it meets later today.
The loonie rose to 1.4704 against the euro and 0.9310 against
the aussie, after falling to 1.4756 and a 4-day low of 0.9360,
respectively in early deals. The loonie may locate resistance
around 1.44 against the euro and 0.92 against the aussie.
The loonie approached a 1-week high of 1.2029 against the
greenback and a 4-day high of 91.11 against the yen, rising from
its previous lows of 1.2066 and 90.71, respectively. The loonie is
seen facing resistance around 1.17 against the greenback and 96.00
against the yen.
Looking ahead, Canada GDP data for the first quarter, U.S. ISM
manufacturing PMI for May and construction spending for April are
set for release in the New York session.
CAD vs Yen (FX:CADJPY)
Forex Chart
From Feb 2024 to Mar 2024
CAD vs Yen (FX:CADJPY)
Forex Chart
From Mar 2023 to Mar 2024