In late Asian trading on Monday, the Canadian dollar recovered from an early Asian session’s multi-day lows against the currencies of US, Europe and Japan.
Oil prices fell to near $70 a barrel in Asia trading today, extending losses as regional stock markets sold-off amid fears Europe debt crisis is spreading.
Benchmark crude for July delivery was down $1.20 to $70.31. The contract lost $3.10 to settle at $71.51 on Friday.
Oil traders often look to stock markets as a gauge of overall investor sentiment. Weak U.S. employment data for May and fresh fears that Hungary must slash government spending to avoid a debt default have
undermined confidence in global economic growth and oil demand.
The Canadian dollar that fell to an 11-day low of 1.0682 against the US currency and 85.23 against the yen in early Monday Asian deals at 10:00 pm ET gained thereafter. As of now, the loonie is worth 85.85 against the yen and 1.0638 against the greenback. If the loonie advances further, it may likely target 89.7 against the yen and 1.045 against the greenback.
The Canadian dollar slipped to a 4-day low of 1.2732 against the euro in Monday Asian deals at 7:30 pm ET. Thereafter, the loonie bounced back and it is currently worth 1.2685 per euro. The next upside target level for the loonie is seen at 1.256.
Traders now look forward to the European session, in which the German factory orders for April and the Euro-zone sentix investor confidence for June are expected.
The U.S. consumer credit report for April has been slated for release at 3:00 pm ET.