Canadian Dollar Advances Amid Higher Oil Prices
January 25 2018 - 12:29AM
RTTF2
The Canadian dollar strengthened against its major counterparts
in early European deals on Thursday, as oil prices rose following a
data showing a decline in U.S. crude inventories last week.
Crude for March delivery rose $0.51 to $66.12 per barrel.
The Energy Information Administration on Wednesday reported a
draw of 1.1 million barrels for the week to January 19. It's the
tenth consecutive drop in U.S. oil inventories.
Meanwhile, gasoline inventories recorded another weekly build at
3.1 million barrels and distillate inventories rose by 600,000
barrels.
A weaker dollar supported commodities, propping up the
currency.
Comments by U.S. Treasury Secretary Steven Mnuchin that he
favours a weaker currency weighed on the dollar.
Investors looked ahead to the ECB meeting later in the day for
clues to whether the central bank would continue stimulus measures
at least through September.
The currency was trading mixed in the Asian session. While it
rose against the greenback and the yen, it held steady against the
euro. Against the aussie, it dropped. Having fallen to a 2-day low
of 0.9983 against the aussie at 1:45 am ET, the loonie reversed
direction and recovered to 0.9946. If the loonie rises further,
0.98 is likely seen as its next resistance level.
The loonie bounced off to 88.64 against the yen, from a low of
88.40 hit at 5:45 pm ET. The next possible resistance for the
loonie is seen around the 89.00 region.
The loonie edged up to 1.5273 against the euro, off its early
low of 1.5323. The loonie is seen finding resistance around the
1.52 mark.
Survey data from Ifo institute showed that Germany's business
confidence improved in January.
The business confidence index rose to 117.6 in January from
117.2 in December. The expected score was 117.0.
On the flip side, the loonie trimmed some of its early gains
against the greenback with the pair trading at 1.2313. This may be
compared to a 4-month peak of 1.2293 hit at 1:25 am ET. The pair
finished Wednesday's deals at 1.2346.
Looking ahead, at 7:45 am ET, the European Central Bank
announces decision on rates. Economists expect the bank to maintain
its refi rate unchanged at zero percent.
In the New York session, Canada retail sales for November, U.S.
weekly jobless claims for the week ended January 20, wholesale
inventories and new home sales for December are set for
release.
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