Canadian Dollar Higher On Rising Oil Prices
21 May 2019 - 7:03PM
RTTF2
The Canadian dollar drifted higher against its major
counterparts in the European session on Tuesday, as oil prices
advanced amid an escalation in tensions in the Middle East and on
speculation the OPEC will continue to produce less crude for some
more time.
Crude for July delivery rose $0.28 to $63.49 per barrel.
According to reports, Yemen's Iranian-allied Houthi rebels
attacked a Saudi airport and military base with a bomb-laden drone,
an assault acknowledged by the kingdom as Mideast tensions remain
high between Tehran and the United States
Traders await weekly U.S. crude inventories reports from the
American Petroleum Institute and Energy Information Administration
for more direction. API is scheduled to come out with its report
later in the day, while EIA's report is due Wednesday morning.
The currency has been trading in a positive territory against
its major rivals in the Asian session, excepting the greenback.
The loonie appreciated to a 2-week high of 82.42 against the
yen, from a low of 81.91 hit at 5:00 pm ET. The next key resistance
for the loonie is likely seen around the 83.5 level.
Having dropped to 1.5000 against the euro at 5:45 pm ET, the
loonie reversed direction and touched a 1-1/2-month high of 1.4944.
The loonie is seen finding resistance around the 1.47 level.
Following a low of 1.3434 hit at 3:15 am ET, the loonie bounced
back to touch a 5-day high of 1.3403 against the greenback. On the
upside, 1.32 is likely seen as the next resistance level for the
loonie.
The loonie spiked up to a 7-month high of 0.9216 against the
aussie, recovering from a low of 0.9299 seen at 7:30 pm ET. Next
key resistance for the loonie is possibly seen around the 0.91
level.
Reserve Bank of Australia Governor Philip Lowe signaled an
interest rate cut in June to underpin growth in employment.
Addressing the Economic Society of Australia in Brisbane on
Tuesday, Lowe said, "A lower cash rate would support employment
growth and bring forward the time when inflation is consistent with
the target."
Looking ahead, Eurozone flash consumer sentiment index for May
is due at 10:00 am ET.
At the same time, U.S. existing home sales for April are
scheduled for release.
Chicago Fed President Charles Evans will speak about the economy
and monetary policy at the Financial Markets Conference in Florida
at 10:45 am ET.
At 12:00 pm ET, Boston Fed President Eric Rosengren will give a
speech at the Economic Club of New York.
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