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Canadian Dollar Firms As Oil Prices Rebound

The Canadian dollar advanced against its major counterparts in the New York session on Thursday, as oil prices rose, after falling in the previous session on concerns over waning demand in the U.S. and China.

Crude for December delivery rose $0.98 to 76.31 per barrel.

Oil prices were rising despite new data indicating deflationary pressures in China, the world’s biggest crude oil importer.

Official data showed earlier in the day that China’s consumer price inflation fell 0.2 percent year-on-year in October while factory-gate prices declined 2.6 percent, falling for a 13th month in a row and raising concerns over domestic demand.

The U.S. Energy Information Administration (EIA) said earlier this week that crude production in the U.S. will rise by slightly less than previously expected but demand will fall.

The loonie strengthened to a 2-day high of 0.8817 against the aussie and a 3-day high of 109.66 against the yen, off its early lows of 0.8850 and 109.33, respectively. The loonie is seen facing resistance around 0.86 against the aussie and 111.00 against the yen.

The loonie edged up to 1.4729 against the euro and 1.3764 against the greenback, from its previous lows of 1.4774 and 1.3806, respectively. The loonie is likely to face resistance around 1.44 against the euro and 1.34 against the greenback.

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