Canadian Dollar Advances Amid Oil Prices Rise

The Canadian dollar strengthened against the other major currencies in the European session on Tuesday, as oil prices rose amid signs that OPEC will extend its supply quota plan well into 2017.

The crude oil delivery for June is currently up by 0.14 percent or $46.57 per barrel.

In the Asian trading today, the Canadian dollar held steady against its major rivals.

In the European trading, the Canadian dollar rose to an 8-day high of 1.4895 against the euro, a 4-week high of 83.18 against the yen and nearly a 4-week high of 1.0038 against the Australian dollar, from early lows of 1.4972, 82.62 and 1.0127, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.47 against the euro, 85.00 against the yen and 0.99 against the aussie.

Against the U.S. dollar, the loonie advanced to 1.3670 from an early low of 1.3708. The loonie may test resistance around the 1.35 region.

Looking ahead, Canada building permits for March and U.S. NFIB small business index for April and U.S. wholesale inventories for March are due to be released in the New York session.

At 9:00 am ET, Federal Reserve Bank of Minneapolis President Neel Kashkari speaks before the Minnesota High Tech Spring Conference, in Minneapolis.

At 1:00 pm ET, Federal Reserve Bank of Boston President Eric Rosengren will give luncheon speech in New York City.

At 4:15 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan is expected to speak at the Lower Middle Market Investment Summit, in Dallas.