Forex News: Canadian Dollar Rises As Oil Prices Rebound

Canadian Dollar Rises As Oil Prices Rebound

(RTTNews) - The Canadian dollar strengthened against other major currencies in the European session on Tuesday, as the crude oil prices rebounded after a reported U.S. attack on Qeshm Island on the eve of crucial midterm elections.

Brent crude futures rose 1.8 percent to $106.62 a barrel after slumping 7.6 percent in the previous session on signs of diplomatic progress between the U.S. and Iran.

WTI crude futures were up 1.6 percent at $97.98 a barrel on heightened fears of Middle East escalation.

The United States reportedly struck Iran's strategic Qeshm Island in the Strait of Hormuz on Monday, the latest in a series of limited strikes on the country in recent weeks.

The Wall Street Journal reported that the U.S. military carried out the strikes, which were defensive and aimed at restricting Iran's ability to attack commercial shipping in the Strait of Hormuz.

Iran's parliament speaker and chief negotiator in talks with the United States, Mohammad Bagher Ghalibaf, said that "the ball is in the U.S. court" to prevent war and that Tehran remains prepared for both diplomacy and military confrontation.

Additionally, the European stocks edged lower as Apple delivered a mixed earnings report and oil prices rebounded to around $107 a barrel after a reported U.S. attack on Qeshm Island on the eve of crucial midterm elections.

In the European trading today, the Canadian dollar rose to a 2-month high of 113.48 against the yen and a 6-month high of 0.9725 against the Australian dollar, from early lows of 112.82 and 0.9793, respectively. If the loonie extends its uptrend, it is likely to find resistance around 116.00 against the yen and 0.95 against the aussie.

Against the U.S. dollar, the loonie advanced to 1.3950 from an early 5-day low of 1.3997. On the upside, 1.38 is seen as the next resistance level for the loonie.

The loonie edged up to 1.5591 against the euro, from an early low of 1.5655. The next possible upside target for the loonie is seen around the 1.54 region.

Looking ahead, U.S. Redbook report, U.S. factory orders for September and U.S. durable goods orders for September are slated for release in the New York session.

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