RTTN: Canadian Dollar Strengthens Amid Oil Prices Rally
The Canadian dollar drifted higher against its most major counterparts in the European session on Friday, as oil prices advanced on optimism over the fulfillment of the proposed agreement by the OPEC and non-OPEC members to cut oil output from next week.
Crude for February delivery rose $0.07 to $53.84 per barrel.
The market seemed to shrugged off the Energy Information Administration's official report showing an unexpected increase in US crude inventories, which rose 614,000 barrels in the week to December 23. Economists were expecting a decline of 2.1 million barrels in crude stocks.
Commodities are higher, including oil and metals, on the back of the OPEC deal that curbs oil output by almost 1.8 million barrels a day in the new year.
Baker Hughes will release the latest data on U.S. drilling later in the day, after the number of active oil rigs totaled 523 in the week to December 23.
With no major economic data due, traders struggle for direction in the final trading day of 2016.
The loonie showed mixed performance in the Asian session. While the loonie declined against the euro and the aussie, it advanced against the greenback and the yen.
The loonie hovered at an early 8-day high of 1.3460 against the greenback, compared to 1.3502 hit late New York Thursday. The loonie may possibly find resistance around the 1.33 region.
Reversing from an early 2-day low of 0.9767 against the aussie, the loonie edged up to 0.9725. On the upside, 0.96 is likely as the next resistance level for the loonie.
Data from the Reserve Bank of Australia showed that Australia's private sector credit rose 5.4 percent on year in November, in line with expectations and up from 5.3 percent in October.
On a monthly basis, credit gained 0.5 percent - unchanged and matching expectations.
The loonie that ended Thursday's trading at 86.32 against the yen hovered at an early weekly high of 86.88.The next possible resistance for the loonie-yen pair is seen around the 88.00 level.
The loonie held steady against the euro, following more than a 4-week low of 1.4357 set early in the Asian session. The pair was valued at 1.4158 when it finished Thursday's trading.
Looking ahead, Chicago PMI for December is due in the New York session.
