(RTTNews) - During early European deals on Tuesday, the Canadian dollar edged up against its major counterparts as oil rose toward $82 a barrel today. The loonie thus recovered from a 5-day low against the yen and a new multi-week low against the aussie.
Oil climbed for the ninth straight session today, as cold snaps in key consumers the United States and Europe boosted demand for heating fuel.
U.S. crude for February delivery rose 15 cents to $81.65 a barrel at 3:21 am ET, off an earlier high of $81.99 and after settling up $2.15 at $81.51 on Monday, its highest close since October 9, 2008.
London Brent crude climbed 21 cents to $80.33.
U.S. data, including November factory orders later today and key jobless claims and employment numbers later in the week will offer clues on the health of the economy and oil demand outlook from the world's top oil consumer.
Oil also got a boost from a weak dollar. The greenback steadied today, keeping broad losses made the previous day, as growing hopes for a global economic recovery spurred investors to shift funds to riskier assets from the greenback.
The Canadian dollar strengthened against the euro during early deals on Tuesday. As of now, the loonie is worth 1.4969 per euro with 1.492 seen as the next target level. At yesterday's close, the euro-loonie pair was quoted at 1.5011.
The French consumer confidence and the German unemployment reports- both for December released today likely influenced the euro.
At 2:05 am ET Tuesday, the Canadian dollar reached a high of 1.0364 against the US currency. Although the loonie declined thereafter, it rebounded shortly and the pair is now worth 1.0380, compared to 1.0414 hit late New York Monday. If the loonie advances further, it may target the 1.035 level.
The Canadian dollar that fell to a 5-day low of 88.15 against the yen at 12:00 am ET Tuesday recovered thereafter. At present, the loonie-yen pair is worth 88.63 and this may be compared to Monday's closing value of 88.92. The next upside target level for the Canadian currency is seen at 89.5.
The Canadian dollar reached 0.9472 against the Aussie at 3:30 am ET Tuesday, up from early Asian session's new multi-week low of 0.9525. The aussie-loonie pair that closed yesterday's trading at 0.9508 is currently worth 0.9485.
Looking ahead, the Eurostat is set to release a flash reading of consumer prices for December at 5:00 am ET.
The U.S. pending home sales and factory orders, Canadian raw material price index report- all for the month of November are expected in the New York session.
