Canadian Dollar Advances Amid Higher Oil Prices

The Canadian dollar climbed against its major counterparts in the European session on Thursday amid higher oil prices, as investors focused on a meeting of the Organization of the Petroleum Exporting Countries and its allies to discuss output policy, with speculation growing that it could pause on an increase in output due to the spread of the Omicron variant of coronavirus.

Market participants hope that OPEC+ may pause output hikes as the new variant is affecting demand growth.

The group has added 400,000 barrels of crude per day to the global market since August.

The rapid spread of the new variant and travel curbs across the world is clouding the demand outlook.

U.S. authorities confirmed the first case of the Omicron variant in an individual who had traveled from South Africa recently.

Meanwhile, the World Health Organization said on Wednesday that the current COVID-19 vaccines may offer protection against severe cases of new omicron variant like the other variants.

The loonie touched a 2-day high of 0.9080 against the aussie, compared to yesterday's close of 0.9103. The loonie may find resistance around the 0.89 level.

The loonie edged up to 1.2778 against the greenback from Wednesday's close of 1.2814. If the loonie rises further, 1.25 is likely seen as its next resistance level.

The loonie rose to 88.67 against the yen, from an early near 2-month low of 87.82, and held steady thereafter. At yesterday's close, the pair was worth 87.93.

The loonie gained to 1.4455 against the euro at 2:45 am ET, but it has since retreated to 1.4520. The pair had closed Wednesday's deals at 1.4503.

Looking ahead, the U.S. weekly jobless claims for the week ended November 27 will be featured in the New York session.