Canadian Dollar Advances As Vaccine Hopes Lifts Sentiment
July 02 2021 - 3:02AM
RTTF2
The Canadian dollar rose against its major counterparts in the
European session on Friday, as results of Johnson & Johnson's
Covid-19 vaccine trial showing effectiveness against the Delta
variant lifted sentiment.
Johnson & Johnson announced that preliminary findings
suggest its single-shot Covid-19 vaccine offered protection against
the Delta variant by inducing neutralizing antibodies.
The J&J vaccine appeared to work against the Delta variant
by "neutralizing antibody titers" and other signs of immune system
response, it added.
Investors focus on U.S. nonfarm payrolls data due later in the
day for more clues on the Fed's QE tapering and a rate hike
move.
The jobs report is forecast to show an increase of 690,000 jobs
in June from 559,000 jobs in May. The jobless rate is expected to
fall to 5.7 percent from 5.8 percent in the previous month.
The Organization of the Petroleum Exporting Countries and allies
are meeting today to make a decision on output levels amid a
standoff on restoring more production.
The proposal calls for an output increase of about 2 million
barrels a day from August to December, but it met stiff opposition
from the United Arab Emirates.
The loonie gained to 1.4685 against the euro and 1.2418 against
the greenback, off its early 2-day low of 1.4743 and an 11-day low
of 1.2450, respectively. If the loonie rises further, 1.44 and 0.90
are possibly seen as its next resistance levels against the euro
and the greenback, respectively.
The loonie firmed to an 8-1/2-month high of 0.9257 against the
aussie, from a prior low of 0.9292. The loonie may face resistance
near the 0.90 level.
The loonie recovered to 89.78 against the yen, from a low of
89.59 seen at 5 pm ET. The loonie is likely to find resistance
around the 92 level.
Looking ahead, U.S. jobs data for June, U.S. and Canadian trade
data, Canada building permits and U.S. factory orders, all for May,
will be released in the New York session.
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