Canadian Dollar Advances As Oil Prices Rise On Talk Of OPEC Output Cuts
08 November 2018 - 7:00PM
RTTF2
The Canadian dollar climbed against its major opponents in the
European session on Thursday, as oil prices rose amid reports that
Russia and Saudi Arabia had began discussions over possible curbs
to oil production in 2019.
Crude for December delivery rose $0.17 to $61.84 per barrel.
Reports said that OPEC and non-OPEC countries are likely to
begin output curbs next year to avert a supply glut.
Ministers from the Organization of Petroleum Exporting Countries
and its allies will meet in Abu Dhabi on Sunday and it is expected
that they will discuss the possibility of cutting production again
next year to support prices at $70 a barrel.
Sentiment was upbeat as the U.S. election uncertainty faded in
the rear-view mirror, Chinese trade data topped forecasts and
investors turned their attention to a monetary policy announcement
from the Federal Reserve, due later in the day.
No change in the Fed rate is expected, but traders will be
looking for new clues as to whether there will be a December rate
hike.
The currency traded mixed against its major rivals in the Asian
session. While it fell against the aussie and the greenback, it
rose against the euro and the yen.
The loonie rose to a new 4-week high of 86.90 against the yen
and a 3-day high of 1.4939 against the euro, from its early lows of
86.52 and 1.5003, respectively. The loonie is likely to find
resistance around 88.00 against the yen and 1.48 against the
euro.
The loonie reversed from its early low of 1.3126 against the
greenback, rising to 1.3088. If the loonie rises further, it may
challenge resistance around the 1.29 level.
Having dropped to a 2-1/2-month low of 0.9563 against the aussie
at 1:15 am ET, the loonie reversed direction and recovered to
0.9532. On the upside, 0.94 is possibly seen as the next resistance
level for the loonie.
Looking ahead, at 8:15 am ET, Canada housing starts for October
are set for release.
In the New York session, Canada new housing price index for
September and U.S. weekly jobless claims for the week ended
November 3 are scheduled for release.
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