Investing.com – The Canadian dollar extended gains against its U.S. counterpart on Monday, hitting a fresh 4-week high, as crude oil prices advanced amid disruption to U.S. oil supplies.
USD/CAD hit 1.0270 during European afternoon trade, the pair’s lowest since August 19; the pair subsequently consolidated at 1.0285, shedding 0.79%.
The pair was likely to find support at 1.0247, the low of August 19, and resistance at 1.0373, last Friday’s high.
Crude oil prices rose for a second day, soaring 1.86% to hit USD 78.00 a barrel, after a leak in a central oil pipeline in Illinois forced it to remain closed for a fourth day.
Earlier in the day, the pipelines operators said they did not know when the pipeline, which transports approxiamtely 70% of Canadian crude oil exports to the U.S. was expected to resume supplies.
Canada is a major crude oil exporter and as a result the currency often tracks changes in crude oil prices.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.38% to hit 1.3196.
Also Monday, French lenders BNP Paribas advised investors to sell the U.S. dollar against its Canadian counterpart, amid increased global demand for commodities and after the Bank of Canada raised its benchmark interest rate last week.
USD/CAD hit 1.0270 during European afternoon trade, the pair’s lowest since August 19; the pair subsequently consolidated at 1.0285, shedding 0.79%.
The pair was likely to find support at 1.0247, the low of August 19, and resistance at 1.0373, last Friday’s high.
Crude oil prices rose for a second day, soaring 1.86% to hit USD 78.00 a barrel, after a leak in a central oil pipeline in Illinois forced it to remain closed for a fourth day.
Earlier in the day, the pipelines operators said they did not know when the pipeline, which transports approxiamtely 70% of Canadian crude oil exports to the U.S. was expected to resume supplies.
Canada is a major crude oil exporter and as a result the currency often tracks changes in crude oil prices.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.38% to hit 1.3196.
Also Monday, French lenders BNP Paribas advised investors to sell the U.S. dollar against its Canadian counterpart, amid increased global demand for commodities and after the Bank of Canada raised its benchmark interest rate last week.