The Canadian dollar gained ground against its major rivals on Tuesday, as oil prices climbed amid a weakening dollar, while continued tensions in Yemen also helped.
Crude for June delivery rose $0.43 to $59.68 a barrel.
In Yemen, clashes between a Saudi-led coalition and Yemen’s Houthi rebels continued on Tuesday, ahead of a planned truce. Yemen’s capital Sanna was struck with air strikes from Saudi forces, while the Houthis claimed to have downed a Moroccan fighter jet in the north.
The American Petroleum Institute will publish its weekly oil inventories data later today, while the Energy Information Administration’s estimate is due on Wednesday.
The loonie was firmer against its most major rivals in the European session. While the loonie advanced against the greenback, euro and the yen, it dropped against the aussie.
The loonie strengthened to a 6-day high of 99.86 against the yen, from its early low of 99.19. Next key resistance for the loonie-yen pair is seen around the 100.6 level.
The loonie appreciated to 1.2024 against the greenback, its strongest since May 6, when it rose to its highest in 3-1/2-months. Further uptrend may lead the loonie to a resistance near the 1.18 region. The pair traded at 1.2100 at yesterday’s close.
Reversing from an early 4-day low of 1.3599 against the euro, the loonie edged up to 1.3505. The loonie is seen finding resistance around the 1.34 zone. The euro-loonie pair was valued at 1.3497 at Monday’s close.
The loonie showed a modest rebound against the aussie, trading at 0.9583, up from an early 4-day low of 0.9618. This may be compared to an early 4-day high of 0.9540. The pair finished yesterday’s trading at 0.9544.
Looking ahead, U.S. Treasury Budget statement for the month of April are set to be published shortly.
At 12:45 am ET, Federal Reserve Bank of San Francisco President John Williams is expected to speak on the economic outlook before the Association for Business Economics in New York.
The material has been provided by InstaForex Company – www.instaforex.com