2017.11.2208:32:00UTC+00Canadian Dollar Climbs On Higher Oil Prices

The Canadian dollar advanced against its major rivals in the European session on Wednesday, as oil prices advanced following an industry data showing a draw down in U.S. crude inventories last week.

Crude for January delivery rose $0.98 to $57.81 per barrel.

Data from the American Petroleum Institute showed that the U.S. crude inventories fell by 6.356 million barrels in the week ended November 17. Analysts had expected the crude stocks to fall by 1.545 million barrels.

The Energy Information Administration is set to release its official data on crude stocks at 10:30 am ET.

Oil prices were buoyed by disruption of Canadian crude supply to the U.S. TransCanada's Keystone pipeline was shut last week, as it spilled 5,000 barrels of oil on a farm field. Investors also awaited cues from the release of minutes from the latest Fed and ECB meeting due today and tomorrow, respectively. The currency showed mixed performance in the Asian session. While it rose against the aussie and the greenback, it dropped against the yen. Against the euro, it held steady. The loonie hovered at a 5-day high of 1.2740 versus the greenback, compared to 1.2778 hit late New York Tuesday. The loonie is likely to target resistance around the 1.26 region. Reversing from an early low of 1.5030 against the euro, the loonie edged up to 1.4962. The loonie is seen finding resistance around the 1.48 mark. The loonie bounced off to 87.98 against the yen, from a low of 87.72 hit at 4:30 am ET. On the upside, 89.00 is likely seen as the next resistance for the loonie. The loonie advanced to a 5-day high of 0.9636 against the aussie and held steady thereafter. The next possible resistance for the loonie is seen around the 0.95 level. Looking ahead, U.S. weekly jobless claims for the week ended November 18, durable goods orders for October and University of Michigan's final consumer sentiment index for November, as well as Eurozone preliminary consumer sentiment index for November are due in the New York session.

At 2:00 pm ET, the Federal Reserve's minutes from the October 31-November 1 policy meeting are due.