Canadian Dollar Rises As Oil Prices Advance

The Canadian dollar climbed against its most major counterparts in the early New York session on Tuesday, as oil prices rose in the wake of a weak dollar and Russian Deputy Energy Minister Kirill Molodtsov announced compliance with the oil production cap according to the OPEC deal.

Crude for August delivery rose $0.55 to $43.93 per barrel.

The American Petroleum Institute releases its weekly report later in the day, followed by the Energy Information Administration's data on Wednesday.

A fall in the dollar attributed to the oil's gain, as the U.S. currency weakened ahead of key speeches from Federal Reserve officials.

Traders are desperate for clues about when the Fed will next raise interest rates. While the central bank's official outlook calls for numerous rate hikes by the end of 2018, a rough patch for the economy may have them re-think.

Bullish comments by Russian Deputy Energy Minister Kirill Molodtsov also supported the oil's rise. Molodtsov remarked that the Russian Federation had fully complied with the Vienna deal, reducing the output by more than 300,000 barrels per day.

The loonie has been trading in a positive territory in the European session, with the exception of the euro.

The loonie advanced to an 8-day high of 1.3195 against the greenback, off its early low of 1.3261. Continuation of the loonie's uptrend may see it challenging resistance around the 1.30 region.

The loonie climbed to a 2-day high of 1.0014 against the aussie, from its early 5-day low of 1.0085. The next possible resistance for the loonie is seen around the 0.99 area.

The loonie strengthened to 84.84 against the Japanese yen, its strongest since March 17. The loonie is poised to find resistance around the 86.00 level.

On the flip side, the loonie fell to near a 2-week low of 1.4915 against the euro, after having advanced to 1.4801 at 4:00 am ET. If the loonie extends decline, 1.51 is likely seen as its next support level.

Speaking at the ECB Forum on Central Banking, the European Central Bank President Mario Draghi said that a considerable degree of monetary accommodation is still required for underlying inflation pressures to build up.

Factors that are now weighing on the path of inflation are mainly temporary that the central bank can typically can look through, Draghi noted.

Looking ahead, U.S. consumer confidence index and Richmond Fed manufacturing index for June are slated for release shortly.

At 11:15 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak about the economic outlook and international trade at the European Economics & Financial Centre, in London.

At 1:00 pm ET, Federal Reserve Chair Janet Yellen will speak on global economic issues at the British Academy 'President's Lecture', in London.

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