Canadian Dollar Advances As Oil Prices Rise
July 27 2017 - 4:07AM
RTTF2
The Canadian dollar climbed against its most major counterparts
in the European session on Thursday amid higher oil prices, as a
larger than expected draw in U.S. inventories soothed fears over a
global glut.
Crude for September delivery rose $0.06 to $48.81 per
barrel.
Data from the Energy Information Administration showed that U.S.
crude inventories sank by 7.2 million barrels last week, compared
to analysts' expectations for a decrease of 3 million barrels.
Gasoline inventories fell by 1 million barrels and distillate
stockpiles were lower by 1.9 million barrels, higher than
expectations for a draw of 614,000 barrels and 453,000 barrels,
respectively.
Meanwhile, European stocks were subdued as the Fed's dovish
policy statement sent euro and pound higher, and earnings proved to
be a mixed bag.
Investors shrugged off survey data from market research group
GfK, which showed that German consumer confidence is set to
strengthen in August. The forward-looking consumer sentiment index
rose to 10.8 from 10.6 in July.
The loonie showed mixed performance in the Asian session. While
the currency dropped against the yen and the aussie, it rose
against the greenback. Against the euro, it held steady.
The loonie, having fallen to 1.4628 versus the euro at 11:30 pm
ET, reversed direction and rose to 1.4556. If the loonie extends
rise, 1.44 is likely seen as its next resistance level.
Data from the European Central Bank showed that Eurozone
monetary aggregate rose at a slightly faster pace in June.
The M3 broad monetary aggregate climbed 5 percent annually,
slightly faster than the revised 4.9 percent growth logged in
May.
The loonie edged up to 0.9964 versus the aussie and 89.58
against the yen, from its early 6-day low of 1.0021 and a 2-day low
of 89.09, respectively. On the upside, 0.97 and 91.00 are likely
seen as the next resistance levels for the loonie against the
aussie and the yen, respectively.
On the flip side, the loonie dropped to 1.2459 versus the
greenback, after having advanced to 1.2415 at 12:25 am ET. The next
possible support for the loonie is seen around the 1.28 region.
Looking ahead, U.S. weekly jobless claims for the week ended
July 22, preliminary durable goods orders, advance goods trade
balance and preliminary wholesale inventories for June are slated
for release in the New York session.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024
