Canadian Dollar Appreciates Amid Higher Oil Prices
August 24 2021 - 2:12AM
RTTF2
The Canadian dollar strengthened against its most major
counterparts in the European session on Tuesday, as oil prices rose
after the U.S. drug regulator granted full approval to the
Pfizer/BioNTech SE COVID-19 vaccine, helping increase hopes for
higher fuel demand.
Crude for November delivery rose $0.88 to $69.25 per barrel.
The full FDA approval of Pfizer's COVID-19 vaccine is expected
to boost economic recovery and spur demand for fuel.
Speaking from the White House, U.S. President Biden called the
approval a key milestone in the nation's fight against COVID. He
stressed that inoculation saves lives and that those awaiting final
FDA approval no longer have a reason to delay.
A call by China's central bank for more economic support and
signs of falling COVID-19 infections in China and India also added
to optimism over global growth.
Investors now await U.S. crude oil supply data from the American
Petroleum Institute, due later in the day for further
direction.
The loonie advanced to a 6-day high of 1.2609 against the
greenback from yesterday's close of 1.2643. If the loonie rises
further, 1.25 is likely seen as its next resistance level.
The loonie was up against the euro, at a 6-day high of 1.4800.
The next possible resistance for the loonie is seen around the 1.47
level.
The loonie hit a 6-day high of 87.10 against the yen, compared
to yesterday's close of 86.63. The loonie is seen facing resistance
around the 88.00 mark.
The loonie held steady against the aussie, after a brief
recovery to 0.9123 at 2:45 am ET. This may be compared to a
15-month high of 0.9111 seen at 5 pm ET.
Looking ahead, U.S. new home sales for July will be featured in
the New York session.
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