Canadian Dollar Climbs Amid Higher Oil Prices
21 November 2017 - 7:23PM
RTTF2
The Canadian dollar advanced against its most major rivals in
the European session on Tuesday, as investors await the OPEC
meeting due to be held later this month, which is set to discuss
extension of production cuts by oil producing nations. Crude for
January delivery rose $0.15 to $56.57 per barrel. The OPEC and
non-OPEC nations will meet in Vienna on November 30 to discuss the
extension of output curbs aimed to rebalance global market. Ongoing
oil production reduction of 1.8 million barrels per day will expire
in March 2018. Markets are hopeful that OPEC along with non-OPEC
countries are likely to continue output cuts through the next
year.
The American Petroleum Institute's weekly inventory data is due
later in the day, with analysts expecting the crude stocks to fall
by 2.167 million barrels last week.
This will be followed by official data from the Energy
Information Administration on Wednesday.
European shares reversed losses as German Chancellor Angela
Merkel said she would prefer a new election to ruling with a
minority. Investors awaited cues from the latest Fed and ECB
meetings due this week. The currency held steady against its major
rivals in the Asian session, with the exception of the aussie.
Having fallen to near a 3-week low of 1.2837 against the
greenback, the loonie reversed direction and rose to 1.2790. If the
loonie rises further, 1.26 is possibly seen as its next resistance
level.
The loonie advanced to 1.5002 against the euro, off its early
4-day low of 1.5082.Continuation of the loonie's uptrend may see it
challenging resistance around the 1.49 zone.
The loonie was trading in a positive territory against the yen
with the pair worth 87.90, up from an early low of 87.64. The
loonie is seen finding resistance around the 89.00 mark.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's all industry activity decreased at a
faster-than-expected pace in September, after rebounding in the
previous month.
The all industry activity index dropped 0.5 percent
month-over-month in September, reversing a 0.2 percent rise in
August. Economists had expected a 0.4 percent fall for the
month.
On the flip side, the loonie declined to a 5-day low of 0.9704
against the aussie, off its prior high of 0.9649. The next possible
downside target for the loonie is seen around the 0.98 region.
Weekly survey compiled by the ANZ bank and Roy Morgan Research
showed that Australia's consumer confidence strengthened during the
week ended November 19 to the highest level in sixteen weeks.
The consumer confidence index climbed to 116.4 from 114.8 in the
preceding week.
Looking ahead, Canada wholesale sales for September and U.S.
existing home sales for October are due in the New York
session.
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