The Canadian dollar rose against its most major rivals in early European deals on Monday, as oil prices improved amid a weak dollar and as Saudi Arabia increased prices for crude sales to Asia for a second month, citing improved global demand.
Crude for May delivery rose $1.61 to $50.75 per barrel.
The dollar was under pressure as weaker-than-expected jobs growth in the United States delayed the prospectus of the Fed rate hike. Since the commodities are priced in dollars, a weak dollar makes it less expensive.
Saudi Aramco, a state owned co., said it narrowed the discount for crude to 60 cents a barrel for May from 90 cents in April.
Last week, Iran and West reached a preliminary agreement ahead of a June deadline over nuclear talks that could potentially lift sanctions on the oil exporting nation. However, analysts are speculating that Iran may take roughly a year to revamp its oil exports.
The loonie ended the Asian session in a mixed manner. While the loonie climbed against the euro and the yen, it was steady against the greenback. Against the aussie, the loonie retraced early gains.
The loonie advanced to 95.54 against the Japanese yen, up from an early low of 95.16. The next possible resistance for the loonie may be located around the 96.00 zone.
The loonie advanced to 1.3668 per euro, coming off from an early 6-day low of 1.3743. If the loonie extends rise, it may find resistance around the 1.36 mark.
The loonie rose back to 1.2452 against the greenback, rebounding from its previous low of 1.2495. The loonie is likely to find resistance around the 1.24 area.
Meanwhile, the loonie moved off from an early 3-month high of 0.9494 against the aussie and was trading around Friday’s close of 0.9524.
Looking ahead, final Markit U.S. services PMI, ISM’s U.S. non-manufacturing index, U.S. labour market conditions index and Canada Ivey PMI – all for March, are set to be published in the New York session.
At 8:00 am ET, U.S. Federal Reserve Bank of New York President William Dudley will deliver a speech about the economic outlook at the New Jersey Performing Arts Center.
The material has been provided by InstaForex Company – www.instaforex.com