Canadian Dollar Firms On Higher Oil Prices
The Canadian dollar climbed against its most major counterparts
in the Asian session on Tuesday, as oil prices surged on concerns
over a tightening of oil supply and a growing global demand.
Brent crude hit a 3-year high of $80.20 per barrel, while WTI
crude crossed $76 a barrel.
Investors fear that supply disruptions from hurricanes are
persisting much longer than thought as demand rises following the
African oil exporters such as Nigeria and Angola may struggle to
raise output to production quotas set by the OPEC amid
underinvestment and maintenance problems.
Inflation in the U.S. is elevated and could persist in the
coming months before dropping back towards the Fed's long-run 2
percent goal, Chairman Jerome Powell said in prepared remarks
before the Senate Banking Committee.
The Fed is expected to reduce the size of its asset purchase
program soon in the wake of a spike in inflation and strengthening
of the labor market.
The loonie recovered to 0.9182 versus the aussie, from a low of
0.9212 seen at 1:45 am ET. The loonie is seen facing resistance
around the 0.90 region.
The loonie touched 1.4736 against the euro, its highest level
since August 13. The loonie is likely to challenge resistance
around the 1.46 level.
The loonie climbed to a 1-1/2-month high of 88.32 against the
yen from yesterday's close of 87.87. The loonie is poised to find
resistance around the 90 level.
In contrast, the loonie reversed from an early nearly 3-week
high of 1.2594 against the greenback and was trading at 1.2652. The
loonie may locate support near the 1.29 level.
Looking ahead, European Central Bank President Christine Lagarde
is due to deliver opening remarks at the 2021 ECB Forum on Central
Banking, via satellite at 8 am ET.
U.S. wholesale inventories and advance goods trade balance for
August and FHFA's house price index and S&P/Case-Shiller home
price index for July, as well as consumer confidence index for
September will be published in the New York session.
Federal Reserve Bank of Chicago President Charles Evans is set
to deliver opening remarks at the payment systems at a virtual
symposium hosted by the Federal Reserve Bank of Chicago at 9 am
Federal Reserve Chair Jerome Powell is scheduled to testify
about the Coronavirus and CARES Act before the US Senate Committee
on Banking, Housing, and Urban Affairs, in Washington DC at 10 am
Federal Reserve Governor Michelle Bowman is due to speak at the
Community Banking in the 21st Century Research and Policy
Conference, via satellite at 1:40 pm ET.
Euro vs CAD (FX:EURCAD)
From Oct 2021 to Nov 2021
Euro vs CAD (FX:EURCAD)
From Nov 2020 to Nov 2021