News Column

Canadian Dollar Rises As Oil Prices Advance

August 11, 2014

CANBERA (Alliance News) - The Canadian dollar advanced against its major counterparts on Monday, as oil price rose, with traders treading cautiously watching the situation in Ukraine.

Crude for September delivery rose USD0.22 to USD97.87 a barrel

Worries about Ukraine eased a bit last weekend as Russia suggested that it might complete its exercises along the Ukrainian border.

However, with Ukrainian forces intensifying their attack on the rebels, the situation is still somewhat tense there.

The US President Barack Obama signaled limited intervention in northern Iraq, if urgent. The President also said that "combat troops will not be returning to fight in Iraq, because there's no American military solution to the larger crisis there."

Meanwhile, an Egyptian-brokered 72-hour cease-fire has come into effect in the Gaza Strip, clearing the way for a permanent peace deal between Israel and Hamas.

According to Canada Mortgage and Housing Corp., Canada's housing starts rose a seasonally adjusted 200,098 on month in July, following a revised 198,665 in June. Economists were expecting the housing starts to grew by 193,000 for the month.

The loonie edged up to 93.23 against the yen, compared to last week's close of 92.92. The next possible upside target for the loonie is seen around the 94.00 mark.

The Bank of Japan said the economy is set to continue its moderate recovery trend as the effects of sales tax hike are expected to wane gradually.

Further, in its monthly report, the bank said exports are likely to head for a moderate increase mainly against the background of the recovery in overseas economies.

The loonie recovered to 1.0150 against the Australian dollar, after having fallen to a 4-day low of 1.0189 at 1:15 am ET. If the loonie extends its gain, it may rest resistance around the 1.01 zone.

The loonie that ended deals at 1.4712 on Friday against the euro climbed to 1.4661. Next key resistance level for the loonie is seen around the 1.46 region.

The loonie rose back against the US dollar with pair trading at 1.0949. The pair was worth 1.0971 when it closed deals last week. The loonie may challenge resistance around the 1.09 mark.

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Source: Alliance News

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