News Column

Canadian Dollar Climbs As Oil Prices Rise On Iraq Conflict

June 22, 2014

OTTAWA (Alliance News) - The Canadian dollar climbed against most major currencies in Asian deals on Monday, as oil prices rose on escalating violence in Iraq.

Crude for August delivery rose USD0.39 to USD107.22 per barrel.

The Islamic State in Iraq and the Levant militants captured more territories on Sunday, after overrunning border posts on the Iraq-Syrian frontier and seizing three towns including Rutba, affecting traffic links between Jordan and Iraq.

US Secretary of State John Kerry, who is in a visit to Middle East and Europe, is to discuss possible disruptions in oil supply due to Iraq conflict, a senior State Department official said Sunday.

Investor sentiment was aided by China flash PMI, which expanded in June to a 7-month high.

Survey results released by HSBC and Markit economics showed that China flash manufacturing PMI improved to 50.8 in June from 49.4 in May. The index beat forecasts for a reading of 49.7.

The loonie advanced to 95.07 against the yen for the first time since January 20. If the loonie extends gain, it may find resistance around the 96.00 zone. The pair was worth 94.83 at last week's close.

The loonie firmed to 1.0725 against the greenback and 1.4590 against the euro, setting 5-1/2-month highs. On the upside, the loonie is likely to face resistance around 1.06 against the greenback and 1.44 against the euro. The loonie ended last week's trading at 1.4621 against the euro and 1.0752 against the greenback.

Looking ahead, PMIs from major European economies for June are due in the European session.

From the US, existing home sales for May and Markit's flash manufacturing PMI for June are set for release in the New York session.

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Source: Alliance News

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