Canadian Dollar Appreciates On Higher Oil Prices
August 12 2020 - 04:56AM
RTTF2
The Canadian dollar turned higher against its major rivals in
the European session on Wednesday, as oil prices rallied after
industry data showed that U.S. inventories of crude fell more than
analysts expected, raising hopes of a recovery in global oil
demand.
Crude for September delivery rose $0.83 to $42.44 per
barrel.
The American Petroleum Institute reported late Tuesday that U.S.
crude stocks fell by 4 million barrels last week, beating
expectations of draw of 2.9 million barrels.
The API data also showed gasoline stockpiles declined by 1.3
million barrels, while distillate inventories fell by 2.9 million
barrels.
The Energy Information Administration will release its official
inventory data later today.
The loonie spiked up to near a 4-week high of 0.9469 against the
aussie and a 6-day high of 1.3259 against the greenback, off its
early lows of 0.9515 and 1.3347, respectively. Near term resistance
for the loonie is seen around 0.94 against the aussie and 1.29
against the greenback.
The loonie rallied to 80.61 versus the yen, its highest level
since June 9. On the upside, 82.5 is possibly seen as the next
resistance level for the loonie.
In contrast, the loonie held steady against the euro, after
having fallen to 1.5656 earlier in the session. The pair had closed
Tuesday's deals at 1.5613.
Data from Eurostat showed that Eurozone industrial production
grew for the second straight month in June, following a marked
relaxation of the coronavirus containment measures.
Industrial output grew 9.1 percent on month, slower than the
12.3 percent rise in May and the 10 percent rise economists' had
forecast.
Looking ahead, U.S. monthly budget statement for July is
scheduled for release in the New York session.
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