The Canadian dollar climbed against its major counterparts in the European session on Tuesday, as oil prices advanced ahead of the inventory data by the American Petroleum Institute later in the day.

Crude for August delivery rose $0.22 to $46.24 per barrel.

The API report is forecast to show a drop of 3.740 million barrels in U.S. crude inventories for the week ended July 14. Gasoline stocks are seen lower by 1.037 million barrels, while distillates are forecast to have risen by 1.300 million barrels.

Official data from the Energy Information Administration is due on Wednesday.

The OPEC need not take more action to reduce supplies for the time being, as oil prices had began to stabilize in the range of $45 - $50 a barrel and this was "what markets see now as a fair price," Kuwait's oil minister Essam al-Marzouq told Reuters.

There is no urgency to hold an extraordinary meeting before its scheduled gathering in November as OPEC-led supply cuts were "working well," he added.

The loonie slipped against its most major rivals in the Asian session, as risk sentiment dampened amid doubts over the future of U.S. tax reforms.

Reversing from an early 4-day low of 88.49 against the Japanese yen, the loonie advanced to 89.04. The loonie is likely to find resistance around the 90.00 region.

The loonie firmed to more than a 1-year high of 1.2596 against the greenback, off its early 4-day low of 1.2701. If the loonie extends rise, 1.25 is possibly seen as its next resistance level. The loonie, having fallen to a 6-day low of 1.4614 against the euro at 9:00 pm ET, reversed direction and rose back to 1.4550. The next possible resistance for the loonie is seen around the 1.44 region.

Survey data from the Mannheim-based Centre for European Economic Research/ZEW showed that German economic sentiment deteriorated more than expected in July.

The ZEW Indicator of Economic Sentiment fell to 17.5 in July from 18.6 in June. The score was forecast to drop to 18.0.

On the flip side, the loonie slipped to a 3-week low of 1.0023 against the aussie and held steady thereafter. This may be compared to a 4-day high of 0.9873 set early in the Asian session. The pair finished yesterday's deals at 0.9901.

Weekly survey compiled by the ANZ bank and Roy Morgan Research showed that Australia's consumer confidence declined for the second straight time during the week ended July 16.

The consumer confidence index dropped to 112.5 from 113.0 in the preceding week.

Looking ahead, U.S. import price index for June and U.S. NAHB housing market index for July are slated for release in the New York session.

At 9:30 am ET, Bank of England Governor Mark Carney is expected to speak at the unveil of the new £10 note, in Hampshire.

US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more US Dollar vs CAD Charts.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more US Dollar vs CAD Charts.