News Column

Canadian Dollar Climbs Amid Rise In Oil Prices

May 27, 2014

CANBERA (Alliance News) - The Canadian dollar strengthened against the other major currencies in European deals on Tuesday, as oil prices advanced after conflicts escalated in Donetsk in eastern Ukraine.

Around 30 rebels fighters were reportedly killed in fierce fighting in Donetsk as Ukrainian forces used combat jets and helicopter gunships, in an attempt to recapture the airport seized by the rebels.

Crude for June delivery rose 0.61 cents or 0.58% to USD104.35 per barrel at 6:43 am ET.

The US data on durable goods orders, house prices and consumer confidence along with two manufacturing surveys from the Richmond and Dallas Federal Reserve Banks are due today that may provide cues on the US economic recovery.

The loonie appreciated to 1.4783 against the euro, a level not seen since January 10, and was higher by 0.3% from early 4-day low of 1.4828. The next possible upside target for the loonie lies around the 1.46 zone. The pair ended Monday's deals at 1.4819.

Having touched a 4-day low of 1.0059 against the aussie at 2:00 am ET, the loonie rose back and was trading steadily in European deals. The pair was trading at 1.0033, almost unchanged from Monday's close. If the loonie extends gain, it is likely to find resistance at the 0.995 area.

The loonie strengthened to 1.0832 against the greenback, its strongest level since May 9. On the upside, the loonie may possibly target resistance around the 1.07 mark. The greenback-loonie pair was worth 1.0859 when it closed deals on Monday.

Recovering from an early low of 93.82 against the yen, the loonie resumed early gains to hit a 1-1/2-month high of 94.08. At Monday's close, the pair traded at 93.87. Continuation of bullish trend may lead the loonie-yen pair to a resistance around the 95.00 level.

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Source: Alliance News

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