Canadian Dollar Rises Amid Risk Appetite, Oil Price Rally
April 23 2017 - 10:39PM
RTTF2
The Canadian dollar advanced against its most major rivals in
pre-European deals on Monday, as investor sentiment lifted up after
Macron's victory in the first round of French Presidential election
and oil prices rose on optimism over OPEC extending the production
cuts beyond June.
Crude for June delivery rose $0.26 to $49.88 per barrel.
In the first-round of voting, Macron secured 23.9 percent of the
vote, while far-right leader Le Pen came behind with 21.7 percent
of votes. Both of them would face-off in the final round on May
7.
Oil prices were underpinned by hopes for extension of production
cuts by OPEC, as the cartel is set to meet on May 25.
Last week, Russian Energy Minister Alexander Novak said that
although OPEC and non-OPEC nations have not yet decided to extend
the oil pact, it would be discussed with OPEC on May 24.
The loonie showed mixed performance in the Asian session. While
the loonie fell against the aussie and the euro, it rose against
the greenback and the yen.
The loonie rose back to 1.3463 against the greenback, from an
early low of 1.3500. The loonie had already set a 5-day high of
1.3452 at the beginning of today's trading. The next possible
resistance for the loonie may be found around the 1.33 level.
The loonie, having fallen to a 5-month low of 1.4689 against the
euro at 5:00 pm ET, reversed direction with the pair trading at
1.4604. If the loonie extends rise, 1.43 is possibly seen as its
next resistance level.
The loonie was trading in a positive territory against the yen
with the pair trading at 81.71, after having advanced to a 11-day
high of 82.04 in early deals. Continuation of the loonie's uptrend
may see it challenging resistance around the 83.00 region.
Data from the Cabinet Office showed Japan's leading index
increased slightly in February instead of a decline reported
earlier.
The leading index, which measures the future economic activity,
rose to 104.8 in February from 104.7 in January, revised from
104.9. The preliminary reading for February was 104.4.
On the flip side, the loonie held steady at 1.0191 against the
aussie, following a decline to more than 3-week low of 1.0207 in
early deals. The pair ended Friday's trading at 1.0172.
Looking ahead, German Ifo business climate index for April is
due in the European session.
Canada wholesale sales for February is set for release in the
New York session.
At 11:30 am ET, Minneapolis Fed President Neel Kashkari speaks
at the University of California, in Los Angeles.
Subsequently, at 3:15 pm ET, Minneapolis Fed President Neel
Kashkari speaks about too big to fail at the Claremont McKenna
College in Claremont, Calif.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024