The Canadian dollar strengthened against most major currencies in the late Asian session on Wednesday, as crude oil prices extended its rally amid concerns that the conflict in Syria will escalate.
Crude oil for January delivery are currently up $0.06 to $42.93 a barrel.
Turkey has downed a Russia jet it claims was violating its airspace near Syria. Russian strongman Vladimir Putin said Turkey is now “accomplices to terrorists.”
Meanwhile, data from industry group, American Petroleum Institute showed that U.S. crude stocks rose by 2.6 million barrels in the week ended November 20. Economists had expected the crude stocks to rise to 1.2 million barrels.
Traders expect the Federal Reserve’s interest rate hike soon in the wake of U.S. GDP data.
A report released by the Commerce Department on Tuesday showed that the U.S. real gross domestic product climbed by 2.1 percent in the third quarter compared to the previously reported 1.5 percent increase. The upward revision matched economist estimates.
Tuesday, the Canadian dollar showed mixed performance against its major rivals. While the Canadian dollar rose against the U.S. dollar and the euro, it fell against the yen. Meanwhile, it held steady against the Australian dollar.
In Asian trading, the Canadian dollar rose to a 5-day high of 1.3279 against the U.S. dollar and a 2-day high of 92.16 against the yen, from yesterday’s closing quotes of 1.3302 and 92.06, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.30 against the greenback and 93.50 against the yen.
Against the euro, the loonie advanced to 1.4158 from an early low of 1.4188. The loonie may test resistance near the 1.40 region.
Meanwhile, the loonie fell to more than 3-month low of 0.9675 against the Australian dollar, from yesterday’s closing value of 0.9649 and held steady thereafter.
Looking ahead, Swiss UBS consumption indicator for October is due to be released in the pre-European session at 2:00 am ET.
The U.K. mortgage approvals data for October is slated for release in the European session.
At 5:00 am ET, European Central Bank Vice President Vitor Constancio unveils biannual financial stability review, in Frankfurt.
Twenty minutes later, Reserve Bank of Australia Assistant Governor Guy Debelle is expected to speak at FX Week Europe’s annual conference, in London.
At 7:30 am ET, U.K. Finance Minister George Osborne presents Autumn Statement and Spending Review, in London.
In the New York session, U.S. durable goods orders, personal income and spending data, new home sales data – all for October, U.S. FHFA house price index for September, U.S. weekly jobless claims for the week ended November 21, U.S. University of Michigan’s final consumer sentiment index for November are due and U.S. crude oil inventories data are set to be published.
The material has been provided by InstaForex Company – www.instaforex.com