Canadian Dollar Firms On Higher Oil Prices
June 03 2019 - 5:04AM
RTTF2
The Canadian dollar strengthened against its most major
counterparts in the European session on Monday, as oil prices
rebounded following remarks from Saudi minister indicating
willingness to help sustain market stability beyond June.
Crude for July delivery rose $0.91 to $54.41 per barrel.
OPEC and its partners are working to arrive a consensus to
sustain oil market stability in the second half of the year, Arab
News newspaper reported Saudi Energy Minister Khalid al-Falih as
saying.
"We will do what is needed to sustain market stability beyond
June. To me, that means drawing down inventories from their
currently elevated levels," Falih said.
The oil suffered steep sell-off last week as global growth
worries weakened the demand outlook.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the greenback and the yen, it
held steady against the euro. Against the aussie, it dropped.
The loonie appreciated to a 4-day high of 1.3487 versus the
greenback, compared to Friday's closing value of 1.3516. Next key
resistance for the loonie is seen around the 1.32 level.
The loonie edged up to 80.35 against the yen, from a 4-month low
of 79.97 seen at 6:30 pm ET. The loonie is seen finding resistance
around the 81.5 region.
The latest survey from Nikkei showed that Japan manufacturing
sector fell into contraction in May, with a manufacturing PMI score
of 49.8.
That's down from 50.2 in April, and it slips beneath the
boom-or-bust line of 50 that separates expansion from
contraction.
The loonie pared its losses to 1.5084 against the euro, from an
early low of 1.5113. If the loonie rises further, 1.48 is possibly
seen as its next resistance level.
Survey data from IHS Markit showed that Eurozone manufacturing
activity remained in contraction territory in May.
The factory PMI fell to 47.7 from 47.9 in April.
On the flip side, the loonie declined to a 3-week low of 0.9396
against the aussie from last week's closing value of 0.9374. The
loonie is poised to test support around the 0.95 mark.
Looking ahead, U.S. ISM manufacturing index for May and
construction spending for April are scheduled for release in the
New York session.
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