Canadian Dollar Advances As Oil Prices Rise
The Canadian dollar climbed against its major counterparts in
the European session on Monday, as progress in U.S. stimulus
package and the approval of Johnson & Johnson's single shot
Covid-19 vaccine lifted oil prices.
The U.S. House passed the $1.9 trillion coronavirus relief
package on Saturday. The bill now moves to the Senate, where a vote
could happen as early as next week.
The U.S. FDA on Saturday authorized Johnson & Johnson's
single-shot Covid-19 vaccine for emergency use, beginning the
rollout of millions of doses of a third effective vaccine that
could reach Americans by early next week.
Traders await the OPEC+ meeting due this week, which is likely
to raise production amid falling inventories.
Analysts expect the coalition to increase output by 500,000
barrels a day next month.
The loonie edged up to 84.25 against the yen, from a low of
83.60 seen at 5:00 pm ET. The loonie may find resistance around the
The latest survey from Jibun Bank showed that the manufacturing
sector in Japan climbed into expansion territory in February, with
a 22-month high manufacturing PMI score of 51.4.
That's up from 49.8 in January and it moves above the
boom-or-bust line of 50 that separates expansion from
The loonie recovered to 1.2671 against the greenback and 0.9802
against the aussie, from its early lows of 1.2737 and 0.9863,
respectively. The loonie is likely to face resistance around 1.25
against the greenback and 0.96 against the aussie.
The loonie was up against the euro, at a 4-day high of 1.5262.
On the upside, resistance is likely seen near the 1.50 level.
Looking ahead, U.S. ISM manufacturing PMI for February and
construction spending for January are set for release in the New