Canadian Dollar Advances On Higher Oil Prices
October 07 2019 - 4:24AM
RTTF2
The Canadian dollar strengthened against its major counterparts
in the European session on Monday, as oil prices rose ahead of the
U.S-China trade talks set to start later this week.
Crude for November delivery rose $0.66 to $53.45 per barrel.
The trade talks will resume on Thursday and Friday, when Chinese
Vice-Premier Liu He meets U.S. Trade Representative, Robert
Lighthizer, and Treasury Secretary, Steven Mnuchin, in
Washington.
U.S. President Donald Trump said on Friday his administration
had a "very good chance" of agreeing a trade deal.
On the contrary, the Bloomberg reported, citing people familiar
with the discussions that Chinese officials are reluctant to agree
to a broad trade deal pursued by U.S. President Donald Trump.
Specifically, Premier Liu He is said to be ruling out
commitments to reform Chinese government subsidies or industrial
reform.
The currency has been trading higher against its major
counterparts in the Asian session, barring the euro.
The loonie advanced to 80.32 against the yen, from a 4-day low
of 80.02 seen at 5:00 pm ET. The loonie is seen finding resistance
around the 82.00 level.
Preliminary data from the Cabinet Office showed that Japan's
leading index fell to the lowest level in nearly a decade in
August.
The leading index, which measures the future economic activity,
fell to 91.7 in August from 93.7 in July. That was in line with
economists' expectations.
The loonie bounced off to 1.3306 against the greenback, after
falling to 1.3331 early in the European session. The next likely
resistance for the loonie is seen around the 1.30 level.
The loonie recovered to 1.4606 against the euro, from a low of
1.4638 hit at 3:00 am ET. If the loonie rises further, it may find
resistance around the 1.44 level.
Figures from Destatis showed that Germany's factory orders
declined at a slower pace in August.
Factory orders decreased 0.6 percent on month, slower than the
revised 2.1 percent decline seen in July. Economists had forecast a
0.4 percent drop. The loonie appreciated to a 4-day high of 0.8965
against the aussie from Friday's closing value of 0.9009. Next
immediate resistance for the loonie is seen around the 0.88
level.
Looking ahead, U.S. consumer credit for August is due in the New
York session.
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