Canadian Dollar Climbs On Oil Prices Rally As OPEC Meets
November 30 2016 - 1:10AM
RTTF2
The Canadian dollar gained ground against its key counterparts
in the early European session on Wednesday, as oil prices advanced
on optimism that an OPEC meeting that began in Vienna would agree
on a production deal to contain supply glut.
Crude for January delivery rose $2.17 to $47.40 per barrel.
Following yesterday's sell-off, oil prices rose over 1 percent
after an Iraqi Oil Minister Jabbar al-Luaibi signaled a greater
likelihood of an OPEC deal to cut production.
"There will be a cut, yes, definitely," he added.
Further underpinning oil was a report from the American
Petroleum Institute showing an unexpected drop of 717,000 barrels
in U.S. crude supplies for the week ended November 25. The Energy
Information Administration will release official supply data later
in the day.
Canada's GDP data for the third quarter is due later in the day.
Economists expect a growth of 3.4 percent on quarter, compared to a
1.6 percent drop in the second quarter.
Investors also focus on U.S. reports on private sector
employment, personal income and spending and pending home sales
later in the day for more direction.
The loonie showed mixed trading in the Asian session. While the
loonie rose against the euro and the yen, it held steady against
the aussie. Against the greenback, it fell.
The loonie advanced to 84.41 against the Japanese yen, a level
not seen since June 8. Continuation of the loonie's uptrend may see
it challenging resistance around the 86.00 mark.
Data from the Ministry of Land, Infrastructure, Transport and
Tourism showed that Japan's housing starts increased at a faster
pace in October.
Housing starts climbed 13.7 percent year-on-year in October,
following a 10 percent rise in September. Economists had forecast
growth to rise to 11 percent.
The loonie recovered to 1.3405 against the greenback, from a low
of 1.3452 hit at 10:15 pm ET. The loonie is seen finding resistance
around the 1.32 region.
The loonie reversed from an early 2-day low of 1.4317 against
the euro, climbing to 1.4264. The next possible resistance for the
loonie may be found around the 1.40 area.
Data from Destatis showed that Germany's unemployment rate
decreased slightly in October.
The jobless rate fell to an adjusted 4.1 percent in October from
4.2 percent in the previous month. In the corresponding month last
year, the rate was 4.5 percent.
The loonie spiked up to a 5-day high of 1.0004 against the
aussie, off its early low of 1.0062. On the upside, 0.98 is likely
seen as the next resistance level for the loonie.
Looking ahead, at 7:30 am ET, European Central Bank President
Mario Draghi is expected to speak about the future of Europe at the
University of Deusto Business School, in Madrid.
At 8:00 am ET, Federal Reserve Bank of Dallas President Robert
Kaplan is expected to speak before the Economic Club of New
York.
In the New York session, U.S. ADP private sector jobs data for
November, U.S. personal income and spending data for October, U.S.
Chicago PMI for November, U.S. pending home sales data for October,
U.S. crude oil inventories data, Canada GDP data for September,
industrial products and raw materials price indexes for October are
set to be announced.
At 11:00 am ET, German Bundesbank President Jens Weidmann is
expected to speak at the Axica Conference Center, in Berlin.
At 11:45 am ET, Federal Reserve Governor Jerome Powell will
deliver a speech titled "The View from the Fed" at the Brookings
Institution, in Washington DC.
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