Canadian Dollar Climbs As Oil Prices Rise

The Canadian dollar firmed against its major counterparts in the European session on Wednesday amid rising oil prices, as a leak in a section of the Druzhba oil pipeline that transports oil from Russia to Europe raised supply concerns.

Polish operator PERN said it detected a leak on one of the two lines of the Western section of the pipeline.

The operator said that pumping in the affected line was stopped immediately and the damage could be accidential.

The discovery of the leak intensified concerns about the energy crisis in Europe in the aftermath of Russia's invasion of Ukraine.

Benchmark Brent crude futures rose 0.4 percent to $94.73 a barrel, while WTI crude futures were up 0.2 percent at $89.58.

The loonie rose back to 0.8625 against the aussie, heading to pierce its Asian session's 2-1/2-year high of 0.8624. Should the loonie rises further, it may likely seek resistance around the 0.83 level.

The CAD/JPY pair touched a 6-day high of 106.33. On the upside, 108.5 is likely seen as the next resistance level for the loonie.

The loonie edged up to 1.3759 against the greenback and 1.3361 against the euro, off its early lows of 1.3829 and 1.3422, respectively. Next key resistance for the loonie is seen around 1.33 against the greenback and 1.30 against the euro.

Looking ahead, U.S. producer prices for September will be released in the New York session.

The U.S. Federal Reserve will release the minutes from the September 20-21 policy meeting at 2:00 pm ET.