RTTN:Canadian Dollar Strengthens As Crude Prices Recover
(RTTNews) - The Canadian dollar advanced on Monday morning as crude oil rallied amid easing fears about Greece leaving the eurozone after opinion polls showed a lead for Greece's pro-bailout conservatives.
Reports that Europe is preparing a new rescue fund to seize control of struggling banks across the continent also lifted investor sentiment, which in turn boosted risk-associated assets.
Sentiment regained after opinion polls over the weekend showed that New Democracy party that supported bailout plans is heading other opponents.
Light Sweet crude for July delivery rose almost 1 dollar a barrel to $91.84 per barrel from Friday's $90.86 a barrel. This was up from last week's fresh multi-month low of below $90 per barrel.
The Canadian dollar appreciated almost 0.5 percent to an 11-day high of 1.2864 against the euro around 6:45 am ET from Asian session's 4-day low of 1.2927. The next likely resistance for the loonie is seen around the 1.2790/1.28 area.
The Canadian dollar also advanced against its US counterpart on Monday, hitting a 5-day high of 1.0226 around 6:30 am ET. The loonie erased some of its gains shortly thereafter and the pair is presently hovering in the 1.0250 level.
The Canadian dollar strengthened against the yen before paring some gains in early deals on Monday. The loonie-yen pair rose as high as 77.65 around 6:30 but the pair slipped back to below 77.50 by 8:15 am ET.
An index measuring corporate service prices in Japan was up 0.2 percent on year in April, the Bank of Japan said today, standing at 96.5.
That beat forecasts for a contraction of 0.2 percent, which would have been unchanged from the upwardly revised reading in March - which originally was pegged at -0.3 percent.
