Canadian Dollar Climbs On Higher Oil Prices
September 25 2017 - 3:38AM
RTTF2
The Canadian dollar advanced against its most major counterparts
in the European session on Monday, as oil prices firmed on
optimistic comments from OPEC with regard to the rebalancing of
crude market.
Crude for November delivery rose $0.25 to $50.91 per barrel.
OPEC and non-OPEC compliance with the supply cut deal rose to
116 percent in August, underscoring the commitment of participating
producing countries to cooperate towards the rebalancing of the
market, OPEC said at a gathering in Vienna last week.
Falling rig counts also buoyed oil prices. Data from Baker
Hughes energy services firm showed that oil rigs fell by 5 to 744
rigs in the week ended September 22.
European stocks were trading mixed as the result of the German
election stoked uncertainty among investors and a report showed
Germany's business confidence weakened in September.
German Chancellor Angela Merkel won a fourth term in office on
Sunday, but will have to govern with a far less stable
coalition.
The currency showed mixed performance in the Asian session.
While it rose against the yen and the euro, it held steady against
the greenback. Against the aussie, the currency fell.
The loonie firmed to 1.2320 against the greenback, after having
dropped to 1.2350 at 7:15 pm ET. If the loonie rises further, 1.21
is possibly seen as its next resistance level.
The loonie spiked up to a weekly high of 1.4630 against the
euro, compared to 1.4733 hit late New York Friday. Continuation of
the loonie's uptrend may see it challenging resistance around the
1.44 area.
Survey results from Ifo Institute showed that Germany's business
confidence weakened in September.
The business confidence index fell to 115.2 in September.
Economists had forecast the indicator to remain at August's
initially estimated value of 115.9.
The loonie remained in a positive territory against the aussie
with the pair trading at 0.9807. This may be compared to a 4-day
low of 0.9840 set at 8:15 pm ET. The next possible resistance for
the loonie is seen around the 0.97 mark.
On the flip side, the loonie held steady against the yen, after
falling to 90.81 at 6:30 am ET. The pair was valued at 90.77 when
it closed deals on Friday.
Data from the Cabinet Office showed that Japan's leading index
decreased less than initially estimated in July.
The leading index, which measures the future economic activity,
dropped to 105.2 in July from 105.7 in June. The reading for July
was revised up from 105.0.
Looking ahead, at 8:30 am ET, Federal Reserve Bank of New York
President William Dudley speaks on "Workforce Development" at
Onondaga Community College.
Half an hour later, the ECB President Mario Draghi gives
testimony before the European Parliament Economic and Monetary
Affairs Committee in Brussels, Belgium
Federal Reserve Bank of Chicago President Charles Evans speaks
before the Economic Club of Grand Rapids in Michigan at 12:40 pm
ET.
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