Canadian Dollar Advances Amid Higher Oil Prices
December 02 2021 - 1:23AM
RTTF2
The Canadian dollar climbed against its major counterparts in
the European session on Thursday amid higher oil prices, as
investors focused on a meeting of the Organization of the Petroleum
Exporting Countries and its allies to discuss output policy, with
speculation growing that it could pause on an increase in output
due to the spread of the Omicron variant of coronavirus.
Market participants hope that OPEC+ may pause output hikes as
the new variant is affecting demand growth.
The group has added 400,000 barrels of crude per day to the
global market since August.
The rapid spread of the new variant and travel curbs across the
world is clouding the demand outlook.
U.S. authorities confirmed the first case of the Omicron variant
in an individual who had traveled from South Africa recently.
Meanwhile, the World Health Organization said on Wednesday that
the current COVID-19 vaccines may offer protection against severe
cases of new omicron variant like the other variants.
The loonie touched a 2-day high of 0.9080 against the aussie,
compared to yesterday's close of 0.9103. The loonie may find
resistance around the 0.89 level.
The loonie edged up to 1.2778 against the greenback from
Wednesday's close of 1.2814. If the loonie rises further, 1.25 is
likely seen as its next resistance level.
The loonie rose to 88.67 against the yen, from an early near
2-month low of 87.82, and held steady thereafter. At yesterday's
close, the pair was worth 87.93.
The loonie gained to 1.4455 against the euro at 2:45 am ET, but
it has since retreated to 1.4520. The pair had closed Wednesday's
deals at 1.4503.
Looking ahead, the U.S. weekly jobless claims for the week ended
November 27 will be featured in the New York session.
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