Canadian Dollar Climbs On Higher Oil Prices
November 22 2017 - 3:32AM
RTTF2
The Canadian dollar advanced against its major rivals in the
European session on Wednesday, as oil prices advanced following an
industry data showing a draw down in U.S. crude inventories last
week.
Crude for January delivery rose $0.98 to $57.81 per barrel.
Data from the American Petroleum Institute showed that the U.S.
crude inventories fell by 6.356 million barrels in the week ended
November 17. Analysts had expected the crude stocks to fall by
1.545 million barrels.
The Energy Information Administration is set to release its
official data on crude stocks at 10:30 am ET.
Oil prices were buoyed by disruption of Canadian crude supply to
the U.S. TransCanada's Keystone pipeline was shut last week, as it
spilled 5,000 barrels of oil on a farm field. Investors also
awaited cues from the release of minutes from the latest Fed and
ECB meeting due today and tomorrow, respectively. The currency
showed mixed performance in the Asian session. While it rose
against the aussie and the greenback, it dropped against the yen.
Against the euro, it held steady. The loonie hovered at a 5-day
high of 1.2740 versus the greenback, compared to 1.2778 hit late
New York Tuesday. The loonie is likely to target resistance around
the 1.26 region. Reversing from an early low of 1.5030 against the
euro, the loonie edged up to 1.4962. The loonie is seen finding
resistance around the 1.48 mark. The loonie bounced off to 87.98
against the yen, from a low of 87.72 hit at 4:30 am ET. On the
upside, 89.00 is likely seen as the next resistance for the loonie.
The loonie advanced to a 5-day high of 0.9636 against the aussie
and held steady thereafter. The next possible resistance for the
loonie is seen around the 0.95 level. Looking ahead, U.S. weekly
jobless claims for the week ended November 18, durable goods orders
for October and University of Michigan's final consumer sentiment
index for November, as well as Eurozone preliminary consumer
sentiment index for November are due in the New York session.
At 2:00 pm ET, the Federal Reserve's minutes from the October
31-November 1 policy meeting are due.
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