Canadian Dollar Appreciates On Higher Oil Prices
May 31 2021 - 3:33AM
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The Canadian dollar rose against its most major rivals in the
European session on Monday, as oil prices climbed on hopes for
strong demand growth in the next quarter, despite the possible
return of Iranian crude and condensate exports.
Crude for July delivery rose $0.68 to $67.00 per barrel.
As concerns over mobility restrictions ease and the vaccination
drive picks up pace, analysts see demand outstripping supply in the
west.
The U.S. is on track to reach a target calling for 70 percent of
adults to have received at least one dose of a COVID-19 vaccine by
July 4, according to the Centers for Disease Control and Prevention
(CDC).
The Organization of the Petroleum Exporting Countries and their
allies including Russia will meet on Tuesday, with producers
expected to discuss easing production curbs against the prospect of
Iranian oil coming back to the market.
The loonie edged up to 1.4700 against the euro and 1.2061
against the greenback, from its prior lows of 1.4736 and 1.2087,
respectively. If the loonie extends rise, 1.45 and 1.18 are
possibly seen as its next resistance levels against the euro and
the greenback, respectively.
The loonie rebounded to 90.96 against the yen, from an Asian
session's low of 90.78. On the upside, 92.00 is possibly seen as
its next resistance level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan retail sales dropped a seasonally adjusted 4.5 percent
on month in April - coming in at 12.200 trillion yen.
That missed expectations for a gain of 2.0 percent following the
1.2 percent increase in March.
In contrast, the loonie fell to 0.9342 against the aussie,
compared to last week's close of 0.9304. The loonie is seen finding
support around the 0.96 region.
Data from the Reserve Bank of Australia showed that Australia
private sector credit rose 0.2 percent on month in April - slowing
from the 1.0 percent gain in March.
On a yearly basis, credit gained 1.3 percent, accelerating from
0.4 percent in the previous month.
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