Canadian Dollar Advances On Oil Price Rise

The Canadian dollar strengthened against other major currencies in the European session on Thursday, as crude oil price rose after U.S. government data revealed the biggest weekly decline in domestic crude production in almost a year.

The crude oil delivery for August is currently up by 0.45 percent or $45.19 per barrel.

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report showing that the gasoline stocks fell by 894,000 barrels, compared with analysts’ expectations for a larger drop.

However, U.S. commercial crude inventories increased by 100,000 barrels last week, EIA said.

In the Asian trading, the Canadian dollar showed mixed trading against its major rivals.

In the European trading, the Canadian dollar rose to more than a 4-month high of 86.55 against the yen, from an early low of 86.05. The loonie is likely to find resistance around the 88.00 region.

The loonie advanced to 1.3007 against the U.S. dollar, from an early low of 1.3044. This may be compared to an early near 5-month high of 1.3006. On the upside, 1.29 is seen as the next resistance level for the loonie.

Against the euro and the Australian dollar, the loonie edged up to 1.4829 and 0.9973 from early lows of 1.4889 and 1.0007, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.44 against the euro and 0.98 against the aussie.

Looking ahead, German flash CPI data for June, U.S. GDP data for the first quarter, U.S. weekly jobless claims for the week ended June 24 are slated for release shortly.

At 2:30 pm ET, European Central Bank Executive board member Ignazio Angeloni will give a dinner speech at the Florence School of Banking & Finance Executive Seminar on Financing Banking Resolution in Florence, Italy.

by RTT Staff Writer

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