The Canadian dollar climbed against its most major rivals in European deals on Friday, as oil prices edged up, and European shares climbed on easing worries about the outlook for global economy after the Federal Reserve Chair Janet Yellen said that it is appropriate to hike rate “sometime later this year.”
Crude for November delivery added $0.20 to $45.11 a barrel.
Speaking at the University of Massachusetts, Yellen said that the Federal Reserve remains on track to raise interest rates by year’s end, as she does not think signs of weak overseas growth would “have a significant path of the path of policy.”
The speech was focused on inflation, which Yellen expects will return to 2% annual growth rate “over the next few years.”
The oil rose after official data showed a larger-than-expected draw in U.S. crude stockpiles last week.
Data from the U.S. Energy Information Administration showed Wednesday that crude stockpiles in the U.S. had dropped 1.9 million barrels in the week ended September 18, while analysts anticipated a decline of 0.7 million barrels.
Investors await the release of U.S. weekly rig count from the Baker Hughes later in the day for further indications on the supply-demand balance in domestic energy markets.
The loonie was trading in a positive territory in the Asian session.
The loonie climbed to a 2-day high of 90.79 against the Japanese yen, up from Thursday’s closing value of 90.23. The loonie-yen pair may find resistance around the 92.00 area.
The loonie that ended Thursday’s trading at 1.4937 against the euro advanced to a 2-day high of 1.4814. The loonie is seen finding resistance around the 1.47 region.
The loonie rebounded to 0.9338 against the aussie, from a 2-day low of 0.9380 hit at 2:50 am ET. The next possible upside target for the loonie may be found around the 0.92 level.
On the flip side, the loonie remained lower at 1.3334 against the greenback, compared to 1.3301 hit late New York Thursday. The loonie is poised to find support around the 1.345 area.
Looking ahead, U.S. final GDP data for the second quarter, Markit’s flash services PMI for September and University of Michigan’s final consumer sentiment index for September are due in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com