2023.04.1707:25:00UTC+00Canadian Dollar Rises On Crude Oil Prices

The Canadian dollar strengthened against other major currencies in the Asian session on Monday, as oil prices rallied after OPEC+'s announced plans to cut more output this month.

Brent crude futures rose 17 cents high to $86.48 a barrel, while U.S. West Texas Intermediate crude was at $82.66 a barrel, up 14 cents.

The April Oil Market Report of the International Energy Agency (IEA) released on Friday, indicated a tightening of global supplies in 2023. The IEA warned in its monthly report that the recent supply cut announced by OPEC could hurt consumers with higher prices. Reports also shows that tighter U.S. inventories and disruptions in supply from Iraqi Kurdistan also rallied the oil prices.

In the Asian trading today, the Canadian dollar rose to 100.28 against the yen, highest since 3rd March 2023. At Friday's close, the loonie was trading at 100.07 against the yen. The loonie may find resistance around the 104.00 level.

Against the Australian dollar and the euro, the loonie advanced to nearly a 5-month high of 0.8948 and a 13-day high of 1.4659 from Friday's closing quotes of 0.8958 and 1.4679, respectively. If the loonie extends its uptrend, it is likely to find resistance around 0.88 against the aussie and 1.44 against the euro.

The loonie edged up to 1.3358 against the U.S. dollar, from an early low of 1.3376. On the upside, 1.32 is seen as the next resistance level for the loonie.

Looking ahead, ECB Supervisory Board members Elizabeth McCaul and Anneli Tuominen will deliver a speech at the seminar "Diverse and effective boards in a changing and competitive landscape" organised by European University Institute's Florence School of Banking and Finance and European Central Bank, in Frankfurt, Germany at 3:30 am ET. Canada wholesale sales data for February and U.S. NAHB housing market index for April are due to be released in the New York Session.

At 9:00 am ET, Bank of England Deputy Governor Jon Cunliffe gives a keynote speech at the Innovate Finance Global Summit, in New York.

At 11:00 am ET, Christine Lagarde, president of the European Central Bank, delivers a speech at Council on Foreign Relations' C. Peter McColough Series on International Economics in New York.