The Canadian dollar climbed against the other major currencies on Tuesday’s European deals, as oil prices rose on the back of a weaker dollar and traders await a slew of oil reports this week to gauge the outlook for oil production.
Crude for July delivery rose $1.18 to $59.32 a barrel.
A weak dollar make prices of dollar-denominated commodities like oil lesser for holders of other currencies.
The U.S. Energy Information Administration is slated to release its monthly short-term energy outlook on Tuesday, apart from its weekly oil inventory report due Wednesday. The Organization of the Oil Exporting Countries is also scheduled to release its oil report on Wednesday, even as the International Energy Agency is set to release its oil report on Thursday.
Weak consumer price inflation from China on Monday led to speculation that Beijing may provide more stimulus to aid economic growth.
The loonie showed mixed trading in the Asian session. While the loonie fell against the yen and the euro, it rose against the greenback and the aussie.
During European trading, the loonie climbed to 1.3852 against the euro, following a 4-day decline to 1.4053 at 9:30 pm ET. The next possible resistance for the loonie is seen around the 1.37 level.
The loonie spiked up to a 2-week high of 1.2328 against the greenback, off its previous low of 1.2440. If the loonie extends rise, it may test resistance around the 1.22 area.
The loonie reversed from early 4-day lows of 0.9571 against the aussie and 99.98 against the yen, edging up to 0.9483 and 100.67,respectively. On the upside, 0.925 and 103.00 are seen as the next resistance levels of the loonie against the aussie and the yen, respectively.
Looking ahead, U.S. wholesale inventories data for April is due.
The material has been provided by InstaForex Company – www.instaforex.com