Canadian Dollar Climbs Amid Higher Oil Prices
April 13 2017 - 05:06AM
RTTF2
The Canadian dollar advanced against its major counterparts in
the early New York session on Thursday, as oil prices rose on
lingering geopolitical worries around the Korean peninsula and the
Middle East.
Crude for May delivery rose $0.04 to $53.15 per barrel.
After talks with Russian President Vladimir Putin over Syrian
issue, U.S. Secretary of State Rex Tillerson told that the two
countries had reached a "low point" in relations.
"The current state of U.S.-Russia relations is at a low point.
There is a low level of trust between our two countries. The
world's two foremost nuclear powers cannot have this kind of
relationship," Rex Tillerson at a press conference in Moscow.
Oil was supported by strong Chinese trade data showing a 15%
rise in crude imports in the first quarter.
The currency was also buoyed by remarks from the Bank of Canada
governor Stephen Poloz, who downplayed the prospectus of the rate
cut after the recent run of strong data.
"In this context, given the data that we've seen in the last few
months, I can say quite clearly, No, a rate cut was not on the
table at this time," Poloz told reporters in Ottawa after the BoC
rate decision.
The currency has been trading in a positive territory in the
previous session.
The loonie climbed to 1.4053 against the euro, its strongest
since March 2. The next possible resistance for the loonie may be
found around the 1.39 region.
Final figures from Destatis showed that German consumer price
inflation was unchanged at a four-month low in March.
The consumer price index rose 1.6 percent year-on-year following
2.2 percent surge in February.
The loonie rebounded to 1.0020 against the aussie, from an early
3-day low of 1.0051. The loonie is seen finding resistance around
the 0.99 mark.
Data from the Australian Bureau of Statistics showed that
Australia's unemployment rate was unchanged at a seasonally
adjusted 5.9 percent in March.
That was in line with estimates and unchanged from the February
reading.
The loonie edged up to 82.63 against the yen, from a low of
82.12 hit at 9:00 pm ET. Continuation of the loonie's downtrend may
see it challenging resistance around the 84.00 mark.
On the flip side, the loonie held steady at 1.3247 against the
greenback, after rebounding from an early European session's
1-1/2-month decline of 1.3223. At yesterday's close, the pair was
worth 1.3246.
Looking ahead, U.S. University of Michigan's preliminary
consumer sentiment index for April and U.S. Baker Hughes rig count
data are slated for release in the New York session.
At 10:00 am ET, Bank of Canada Governor Stephen Poloz is
expected to testify along with Senior Deputy Governor Carolyn
Wilkins before the Standing Senate Committee on Banking, Trade and
Commerce, in Ottawa.
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