The Canadian dollar edged higher against its major rivals in early European trading on Friday despite a decline in oil prices. The Canadian dollar rose to a new multi-year high against the euro and a 7-month high against the Australian dollar.
Light sweet crude for June delivery dropped 11 cents to $83.59 per barrel today as the market was weighed down by a US Department of Energy on Wednesday showed an unexpected increase in crude and product stocks.
The Canadian currency rose to more than a 7-month high of 0.9183 against the Australian dollar at 3:50 am ET. Currently, the loonie is quoted at 0.9193 against the aussie, compared to yesterday’s close of 0.9280. On the upside, the next likely resistance for the loonie is seen around the 0.880 level.
The Canadian dollar that reached a low of 93.12 against the Japanese yen in early Asian deals bounced back and hit as high as 93.57 around 3:55 am ET. The loonie-yen pair is currently worth 93.5, compared to previous day’s close of 93.52. The next upside target for the pair is seen around the 93.7 level in near-term.
Japan’s all industry activity dropped 2.3% in February on a monthly comparison, following a revised 3.4% rise in January, the Ministry of Trade, Economy and Industry said today. Economists had expected only 1.5% decline for February. On an annual basis, all industry activity grew 4.1% in February, much faster than the 1.9% growth seen in the previous month.
The Canadian dollar soared to more than an 8-year high of 1.3244 against the 16-nation currency at 3:30 am ET, compared to yesterday’s close of 1.3294. Currently, the loonie is trading at 1.3252 against the euro, the next likely target level for the domestic unit is seen around the 1.2610 level.
The euro has been under selling pressure after Moody’s Investors Service cut Greece’s sovereign debt to A3 on Thursday and said it was likely to reduce the rating further unless the deficit-burdened government was able to restore market confidence.
Officials from the IMF and the European Commission are currently in discussions with Greek authorities on providing financial support to the debt-stricken country.
Eurozone officials have offered an emergency package of loans worth up to EUR 30 billion to the Greek government, with a further EUR 10-15 billion coming from the IMF
The Canadian dollar touched a high of 0.9983 against the U.S. dollar by 4:30 am ET from an early Asian session low of 1.0037. Presently, the loonie is trading at 0.9983 against the greenback, compared to yesterday’s close of 1.0002.
Looking ahead, the euro-zone industrial new orders for the month of February is expected, shortly.
U.S. Durable goods orders and new home sales-both for the month of March have been slated for release in the New York session.