Canadian Dollar Advances As Oil Prices Rise On Talk Of OPEC Output Cuts

The Canadian dollar climbed against its major opponents in the European session on Thursday, as oil prices rose amid reports that Russia and Saudi Arabia had began discussions over possible curbs to oil production in 2019.

Crude for December delivery rose $0.17 to $61.84 per barrel.

Reports said that OPEC and non-OPEC countries are likely to begin output curbs next year to avert a supply glut.

Ministers from the Organization of Petroleum Exporting Countries and its allies will meet in Abu Dhabi on Sunday and it is expected that they will discuss the possibility of cutting production again next year to support prices at $70 a barrel.

Sentiment was upbeat as the U.S. election uncertainty faded in the rear-view mirror, Chinese trade data topped forecasts and investors turned their attention to a monetary policy announcement from the Federal Reserve, due later in the day.

No change in the Fed rate is expected, but traders will be looking for new clues as to whether there will be a December rate hike.

The currency traded mixed against its major rivals in the Asian session. While it fell against the aussie and the greenback, it rose against the euro and the yen.

The loonie rose to a new 4-week high of 86.90 against the yen and a 3-day high of 1.4939 against the euro, from its early lows of 86.52 and 1.5003, respectively. The loonie is likely to find resistance around 88.00 against the yen and 1.48 against the euro.

The loonie reversed from its early low of 1.3126 against the greenback, rising to 1.3088. If the loonie rises further, it may challenge resistance around the 1.29 level.

Having dropped to a 2-1/2-month low of 0.9563 against the aussie at 1:15 am ET, the loonie reversed direction and recovered to 0.9532. On the upside, 0.94 is possibly seen as the next resistance level for the loonie.

Looking ahead, at 8:15 am ET, Canada housing starts for October are set for release.

In the New York session, Canada new housing price index for September and U.S. weekly jobless claims for the week ended November 3 are scheduled for release.