Forex News: Canadian Dollar Rises As Oil Prices Soar

Canadian Dollar Rises As Oil Prices Soar

(RTTNews) - The Canadian dollar strengthened against other major currencies in the European session on Thursday, as the crude oil prices surged approaching a near four-year high reached in May amid renewed concerns over escalating supply risks in the Middle East.

Brent crude futures jumped 3.3 percent to $112.43 a barrel as a drone attack on Saudi Aramco's Shaybah oil field heightened concerns over further disruptions to energy supplies. WTI crude futures were up 2.6 percent at $99.69.

Saudi Aramco's Shaybah oilfield continues normal operations following the drone attack.

An attack on King Fahd International Airport in Dammam, Saudi Arabia, on Wednesday evening killed one resident and injured eight others.

As Houthi attacks intensify in Yemen, the U.S. State Department ordered non-emergency U.S. government staff and their family members to leave Saudi Arabia.

The New York Times reported, citing U.S. officials and others familiar with the deliberations, that the United States and Israel have drawn up specific plans for a possible new round of strikes against Iran after the U.S. midterm elections.

The proposed targets could include Iran's nuclear facilities, missile and drone capabilities, and energy infrastructure, according to the report.

Commercial oil inventories fell by 3.1 million barrels in the week ending October 16, according to statistics issued by the US Energy Information Administration (EIA) on Wednesday. These numbers provide prices an additional boost and far above the 800K barrel decline predicted by market analysts.

In the European trading today, the Canadian dollar rose to a 1-month high of 1.4014 against the U.S. dollar and a 7-month high of 1.5728 against the euro, from early lows of 1.4049 and 1.5791, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.38 against the greenback and 1.56 against the euro.

Against the Australian dollar, the loonie advanced to a 2-day high of 0.9825 from an early low of 0.9881. On the upside, 0.96 is seen as the next resistance level for the loonie.

Meanwhile, the loonie fell to 3-day low of 111.76 against the yen, from an early 1-month high of 112.69. The loonie is likely to find support around the 110.00 region.

Looking ahead, Canada new housing price index, PPI data and raw materials price, all for September, Eurozone flash consumer confidence for September, U.S. Consumer Board's leading index for September, U.S. weekly jobless claims data and U.S. Kansas Fed manufacturing index for September are slated for release in the New York session.

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