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FX.co ★ Canadian Dollar Climbs On Higher Oil Prices

Canadian Dollar Climbs On Higher Oil Prices

The Canadian dollar advanced against its most major counterparts in the European session on Friday, amid a rise in oil prices due to persistent worries about a tight supply at the U.S. storage hub in Cushing, Oklahoma.

Crude for December delivery rose $0.84 to $83.34 per barrel.

Crude oil inventories at Cushing have fallen to their lowest levels since 2018, at 31.2 million barrels, official data showed on Wednesday.

The currency was further underpinned by easing worries over property developer China Evergrande, which has made interest payments worth $83.5 million on dollar bonds before the deadline.

Data from Statistics Canada showed that Canada retail sales rose more than expected in August.

Retail sales grew 2.1 percent on a seasonally adjusted monthly basis in August, after a revised 0.1 percent drop in the previous month. Economists had expected a rise of 2 percent.

The loonie edged up to 1.2321 against the greenback, from a low of 1.2375 seen at 8:45 pm ET. The loonie may test resistance around the 1.19 level, if it rises again.

The loonie climbed to a 4-day high of 1.4330 against the euro from Thursday's close of 1.4366. Next key resistance for the loonie is seen around the 1.42 level.

Flash survey results from IHS Markit showed that Eurozone private sector growth eased sharply to a six-month low in October amid rising supply bottlenecks and COVID-19 concerns.

The composite output index dropped to 54.3 in October from 56.2 in September. The reading was expected to fall to 55.2.

The loonie bounced off to 0.9235 against the aussie, from a low of 0.9263 seen at 6:15 am ET. The currency is seen finding resistance around the 0.90 level.

In contrast, the loonie fell to 91.94 against the yen, after rising to 92.49 at 9:30 pm ET. The next possible support for the loonie is seen around the 89 level.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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