Canadian Dollar Climbs As Oil Prices Rally
10 August 2020 - 6:57PM
RTTF2
The Canadian dollar drifted higher against its major rivals in
the European session on Monday, as oil prices climbed after Iraq
pledged to cut its oil output by a further 400,000 barrels per day
and Saudi Aramco said demand will continue to improve.
Crude for September delivery rose $0.62 to $41.84 per
barrel.
Iraq said on Friday that it will cut production by 400,000
barrels per day in August and September to compensate for failing
to comply with a deal made in April to limit oil production.
Saudi Arabian Aramco Chief Executive Amin Nasser said on Sunday
the company has seen signs of a recovery in global oil demand as
economies gradually open up. Crude consumption in Asia is almost
back to pre-Covid-19 levels, Nasser added.
The easing of lockdown restrictions and signs of improvement in
China's industrial activity also supported prices.
Deflation at China's factories eased in July, driven by a rise
in global energy prices and as industrial activity climbed back
towards pre-coronavirus levels, data showed.
The loonie spiked up to 4-day highs of 1.5722 versus the euro
and 0.9561 against the aussie, off its early lows of 1.5784 and
0.9591, respectively. Next key resistance for the loonie is seen
around 1.52 versus the euro and 0.94 against the aussie.
The loonie reversed from its early low of 78.99 versus the yen,
rising to 79.32. On the upside, 81.00 is likely seen as the next
resistance level for the loonie.
The Canadian currency recovered to 1.3371 against the greenback,
from a low of 1.3395 set at 4:00 am ET. Should the loonie rises
further, it may likely seek resistance around the 1.29 level.
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