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Canadian Dollar Advances As Oil Prices Rise
The Canadian dollar strengthened against its major counterparts in the Asian session on Friday, as encouraging retail sales figures from the U.S. helped ease some concerns about a recession in the world’s biggest economy.
Crude for September delivery rose $0.64 to $55.11 per barrel.
Official data showed that U.S. retail sales rose 0.7 percent in July compared to a revised 0.3 percent increase in June. Economists had expected a gain of 0.3 percent.
The data relieved some of the worries over a potential recession that prompted a sell-off in global markets.
Reuters reported that China is planning to unleash stimulus to support its economy.
Investors have increased bets for the European Central Bank’s stimulus measures at the September meeting following comments from policy maker Olli Rehn.
Rehn on Thursday flagged the need for a significant easing package in September to support the flagging euro zone economy.
The loonie appreciated to 79.82 against the yen, from a low of 79.59 hit at 8:30 pm ET. The loonie is seen finding resistance around the 82.00 level.
After a decline to 1.3325 versus the greenback at 9:45 pm ET, the loonie reversed direction with the pair trading at 1.3300. If the loonie rises further, 1.30 is seen as its next resistance level.
The loonie strengthened to a 2-day high of 1.4764 against the euro from Thursday’s closing value of 1.4786. The next possible resistance for the loonie is seen around the 1.45 level.
The loonie was mildly higher against the aussie with the pair trading at 0.9031. This followed an 8-day low of 0.9048 set at 11:00 pm ET. On the upside, 0.89 is possibly seen as the next resistance level for the loonie.
Looking ahead, Eurozone trade data for June is due in the European session.
In the New York session, U.S. housing starts and building permits for July and University of Michigan’s preliminary consumer sentiment index for August are scheduled for release.
The material has been provided by InstaForex Company – www.instaforex.com
