Canadian Dollar Advances As Oil Prices Gain
05 November 2024 - 12:05AM
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The Canadian dollar climbed against its major counterparts in
the New York session on Monday, as oil prices rose after OPEC+
agreed to push back its December production increase by at least a
month, prioritizing price support over regaining market share.
Crude for December delivery rose $1.68 to $71.17 per barrel.
The group led by Saudi Arabia and Russia was supposed to begin a
series of monthly production increases by adding 180,000 barrels a
day from December.
Now, the decision has been postponed due to recent pressure on
prices from weak demand growth, especially in China and Europe.
Oil prices also remain supported by persisting Middle East
tensions and expectations of China's fiscal stimulus.
Iran's Supreme Leader Ayatollah Ali Khamenei has vowed that
Israel and the U.S. would face a "teeth-breaking response" for
their actions against the country.
The Wall Street Journal reported that Iran is planning a complex
attack on Israel, which may include missiles with high-powered
warheads.
The loonie edged up to 0.9146 against the aussie and 1.5117
against the euro, from an early 10-day low of 0.9205 and more than
a 2-month low of 1.5170, respectively. The currency is poised to
challenge resistance around 0.90 against the aussie and 1.49
against the euro.
The loonie touched 1.3875 against the greenback, setting a
10-day high. If the loonie rises further, it is likely to test
resistance around the 1.36 region.
The loonie rebounded to 109.56 against the yen, off an early low
of 109.00. The currency is likely to locate resistance around the
110.5 level.
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