The Canadian dollar climbed against most major counterparts in early European trading on Monday, as commodities rallied on optimism that the U.S. Federal Reserve is likely to delay raising interest rates this year.
Crude oil extended gains after the new Saudi oil minister, Khalid Al-Falih, said that the glut is over and the oil market is heading toward a balance.
Crude for August delivery rose $0.09 to $49.09 per barrel.
Sentiment was underpinned on hopes that the central across the globe would roll out stimulus measures to contain any Brexit effect on economic growth.
The loonie has been trading in a positive territory in Asian deals, amid rising risk appetite.
In European deals, the loonie advanced to a weekly high of 1.4311 against the euro, off its early low of 1.4386. On the upside, the loonie may challenge resistance around the 1.42 mark.
The loonie climbed to 79.82 against the Japanese yen and 1.2868 against the greenback, from its early lows of 79.31 and 1.2922, respectively. The next possible resistance for the loonie may be found around 81.00 against the yen and 1.26 against the greenback.
On the flip side, the loonie dropped to a weekly low of 0.9693 against the aussie, off its early 2-day high of 0.9610. If the loonie extends decline, 0.98 is likely seen as its next support level.
Looking ahead, Canada RBC manufacturing PMI for June is slated to be released in the New York session.
U.S. banks will be closed in observance of Independence Day holiday.
The material has been provided by InstaForex Company – www.instaforex.com