Canadian Dollar Firms On Higher Oil Prices
February 27 2019 - 01:13AM
RTTF2
The Canadian dollar strengthened against its major counterparts
in the European session on Wednesday, a data showing a decline in
U.S. crude inventories buoyed oil prices.
Crude for April delivery rose $0.73 to $56.25 per barrel.
Data from the American Petroleum Institute showed that U.S.
crude oil inventories fell by 4.2 million barrels to 444.3 million
barrels in the week to February 22.
The U.S. Energy Information Administration will release its
crude inventory data later in the day.
Oil prices received further support from OPEC's plan to continue
its supply cuts despite heightened political pressure from U.S.
President Trump to loosen its supply cuts.
Meanwhile, European stocks retreated after Fed Chair Jerome
Powell warned of potential slower growth and mounting U.S.
debt.
Rising geopolitical tensions between India and Pakistan as well
as caution ahead of a crucial meeting between U.S. President Donald
Trump and North Korean leader Kim Jong Un in the Vietnamese capital
also kept investors nervous.
The loonie traded mixed against its major counterparts in the
Asian session. While it held steady against the aussie and the
greenback, it rose against the euro. Against the yen, it
dropped.
The loonie bounced off to 84.03 against the yen, from a low of
83.76 hit at 2:15 am ET. The loonie is likely to challenge
resistance around the 86.00 level.
The loonie rose to a 2-day high of 1.3144 against the greenback
from yesterday's closing value of 1.3168. Next key resistance for
the loonie is seen around the 1.30 mark.
The loonie rose back to 1.4974 against the euro from an early
low of 1.5008. The loonie is poised to challenge resistance around
the 1.48 level.
Survey results from the European Commission showed that Eurozone
economic sentiment deteriorated for a sixth consecutive month and
at a faster than expected pace in February.
The economic sentiment indicator fell to 105.3 from 106.2 in
January. Economists had expected a reading of 106.
The loonie advanced to a 2-day high of 0.9417 against the
aussie, off an early 6-day low of 0.9476. The loonie is seen
finding resistance around the 0.93 level.
Looking ahead, Canada consumer price index for January, U.S.
pending home sales for the same month, wholesale inventories,
advance goods trade data and factory orders, all for December, are
scheduled for release in the New York session.
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