Canadian Dollar Strengthens On Higher Oil Prices
July 17 2019 - 3:25AM
RTTF2
The Canadian dollar climbed against its major counterparts in
the European session on Wednesday, as oil prices advanced after
steep losses in the previous session, as Barry weakened to a
tropical depression and U.S. Secretary of State Mike Pompeo said
Iran was prepared to negotiate about its missile program.
Crude for August delivery rose $0.36 to $57.98 per barrel.
The upside remained capped somewhat after industry data showed a
smaller-than-expected decline in U.S. crude inventories.
The American Petroleum Institute reported a small crude oil
inventory draw of 1.401 million barrels for the week ending July
11, compared to analyst expectations for a decrease of 2.7 million
barrels.
Official data from the U.S. government's Energy Information
Administration will be published later today, with analysts
expecting another drawdown.
Investors focus on the CPI figures to be released from
Statistics Canada, due at 8:30 am ET. Economists expect a drop of
0.3 percent month-on-month, compared to a 0.4 percent rise in
May.
The currency has been trading higher against its major
counterparts in the Asian session, excepting the greenback.
The loonie rose to 1.4635 against the euro and 1.3053 against
the greenback, from its early low of 1.4678 and a weekly low of
1.3094, respectively. If the loonie extends rise, 1.45 and 1.28 are
possibly seen as its next resistance levels against the euro and
the greenback, respectively.
The loonie gained to a 2-day high of 0.9149 against the aussie,
off its previous low of 0.9187. On the upside, 0.90 is possibly
seen as the next resistance for the loonie.
Data from Westpac showed that Australia's leading index improved
in June but remained consistently negative.
The Westpac- Melbourne Institute Leading Index that indicates
likely pace of economic activity over the next nine months, rose to
-0.02 percent in June from -0.47 percent in May.
Reversing from its early low of 82.64 against the yen, the
loonie climbed to 82.96. The next possible resistance for the
loonie is seen around the 85.00 mark.
Looking ahead, Canada manufacturing sales for May and consumer
price index for June, as well as U.S. housing starts and building
permits for the same month and Federal Reserve's Biege book report
are set to be released in the New York session.
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