The Canadian dollar advanced against the majority of major counterparts in the European session on Monday, as oil rates climbed, with recently’s landmark decision by the OPEC to cap oil production raising hopes for tightened up oil markets.
Crude for January shipment rose $0.46 to $52.14 per barrel.
Investors now concentrate on the upcoming meeting between OPEC & & non-OPEC nations on December 10 in Vienna, where the countries would settle the information on the output cuts.
Starting from January, OPEC nations are expected to lower the output by around 1.2 million barrels each day and non-OPEC nations would contribute another 600,000 barrels per day to the cuts.
The currency was underpinned by increasing European shares, as investors appeared to shrug off the outcome of the Italian referendum and subsequent resignation of Prime Minister Matteo Renzi.
The currency was lower against its significant counterparts in the Asian session, with the exception of the euro.
The loonie climbed to a 7-1/2-month high of 86.06 versus the yen, off its early 5-day low of 84.59. The loonie is likely to find resistance around the 88.00 mark.
Survey figures from Cabinet Office showed that Japan’s customer confidence declined for the second straight month in November to the weakest level in 6 months.
The seasonally adjusted customer confidence index was up to 40.9 in November from 42.3 in the previous month. In September, the reading was 43.0.
The loonie, having actually fallen to a 4-day low of 1.3357 versus the greenback at 6:15 pm ET, reversed instructions and advanced to 1.3274. If the loonie extends increase, 1.30 is perhaps seen as its next resistance level.
The loonie was trading at 0.9889 versus the aussie, reversing from an early 5-day low of 0.9939. More gains might take the loonie to a resistance near the 0.97 region.
On the flip side, the loonie held consistent against the euro, following a 5-day low of 1.4271 hit at 7:05 am ET. This might be compared with the Asian session more than 1-year high of 1.4027.
Study arises from IHS Markit showed that the euro area economic sector expanded at the fastest speed in 11 months in November however the rate of development was somewhat weaker than initially estimated.
The last composite output index increased less-than-estimated to 53.9 in November from 53.3 in October. The flash score was 54.1.
Looking ahead, Markit’s U.S. final services PMI, ISM non-manufacturing composite index and labor market conditions index for November are due in the New york city session.
The Federal Reserve Bank of St. Louis President James Bullard will discuss the United States financial outlook at the Arizona State University’s annual financial forecast luncheon in Phoenix at 2:05 pm ET.
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