The Canadian dollar continued to be strong against the other major currencies in the early European session on Monday amid risk appetite, as European shares rebounded, after a steep decline in the Asian session led by slide in oil prices.
The U.K.’s FTSE 100 index is currently up 0.61 percent or 35.33 points at 5,839, France’s CAC 40 index is up 0.85 percent or 35.92 points at 4,246 and Germany’s DAX is up 0.85 percent or 81.61 points at 9,626.
Oil prices fell around 4 percent to hit their lowest level since 2003 in Asian deals, as the removal of sanctions over Iranian oil exports cleared the path for an all-out oil war between the Middle Eastern rivals.
In the Asian trading today, the Canadian dollar rebounded from early lows against its major rivals.
In the early European session, the Canadian dollar rose to 1.4494 against the U.S. dollar and 81.02 against the yen, from an early near 13-year low of 1.4605 and more than a 3-year low of 79.85, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.42 against the greenback and 85.00 against the yen.
Against the euro and the Australian dollar, the loonie edged up to 1.5762 and 0.9993 from an early lows of 1.5951 and 1.0052, respectively. The loonie may test resistance around 1.54 against the euro and 0.98 against the aussie.
Looking ahead, Bank of England monetary policy committee member Gertjan Vlieghe gives lecture at the London School of Economics on the topic “Debt, Demographics and the Distribution of Income: New Challenges for Monetary Policy” , in London at 1:30 pm ET.
U.S. banks will be closed in observance of Martin Luther King Day holiday.
The material has been provided by InstaForex Company – www.instaforex.com