In early European deals on Tuesday, the Canadian dollar recovered from multi-day lows against the currencies of US and Japan as oil rose above $75 a barrel today. Against the euro and the aussie, the loonie extended its late Asian session’s uptrend during this time.
At 4:45 am ET, U.S. crude futures traded at $75.34. Crude climbed $1.34 to settle at $75.12 on Monday.
The Canadian dollar rose against the euro in early European deals on Tuesday. The euro-loonie pair that closed yesterday’s trading at 1.2648 is currently worth 1.2570. If the loonie gains further, it may likely target the 1.246 level.
Italian and the Euro-zone trade balance for April, German and the Euro-zone ZEW economic sentiment index for June, Euro-zone first quarter employment data, which were released today likely influenced the euro.
During early European deals on Tuesday, the Canadian dollar climbed against the Aussie. The loonie is now worth 0.8806 against the aussie, compared to Monday’s closing value of 0.8887. The near term resistance for the Canadian currency is seen around the 0.867 level.
The minutes of the Reserve Bank of Australia’s June meeting minutes released earlier in the day showed that members of the policy board felt in this month’s monetary policy meeting that a “wait-and-watch” stance was warranted given uncertainties in Europe and the lending rates having risen to around “average” levels.
The Canadian dollar advanced after touching a 4-day low of 1.0363 against the US currency and a 5-day low of 88.03 against the yen at 2:30 am ET Tuesday. The loonie is presently trading at 88.63 against the yen and 1.0306 against the greenback. The next upside target level for the loonie is seen at 89.9 against the yen and 1.023 against the greenback. The loonie-yen and the greenback-yen pairs were worth 88.55 and 1.0348, respectively at yesterday’s close.
The Bank of Japan today decided to provide loans to financial institutions to support strengthening the foundations for economic growth. Also, the central bank maintained its key interest rate at a record low of 0.10%.
The U.S. export & import price indexes for May, the results of the New York Federal Reserve’s empire state manufacturing survey for June, Treasury Department’s report on the flows of financial instruments into and out of the U.S. for April and the NAHB housing market index for June have been slated for release in the upcoming North American session.
Canada’s first quarter labor productivity and the manufacturing shipments for April are also due for release in New York morning.