Canadian dollar rises as oil prices rise

CANBERA (dpa-AFX) – The Canadian dollar rose against its major counterparts in the New York session on Monday as oil prices rose after OPEC+ agreed to push back December production increases by at least a month, with price support a priority gained top regaining market share.

December crude rose $1.68 to $71.17 a barrel.

The group led by Saudi Arabia and Russia would begin a series of monthly production increases by adding 180,000 barrels per day from December.

Now the decision has been postponed due to recent price pressures due to weak demand growth, especially in China and Europe.

Oil prices also remain supported by ongoing tensions in the Middle East and expectations of China’s fiscal stimulus.

Iran’s Supreme Leader Ayatollah Ali Khamenei has vowed that Israel and the US will face a “teeth-breaking response” to their actions against the country.

The Wall Street Journal reported that Iran is planning a complex attack on Israel, which could include missiles with powerful nuclear warheads.

The loonie rose to 0.9146 against the Australian and 1.5117 against the euro, from an early 10-day low of 0.9205 and a two-month low of 1.5170, respectively. The currency is poised to offer resistance around 0.90 against the Australian and 1.49 against the euro.

The loonie reached 1.3875 against the dollar, setting a 10-day high. If the loonie continues to rise, it will likely test resistance around the 1.36 region.

The loonie recovered to 109.56 against the yen after hitting an early low of 109.00. The currency is likely to locate resistance around the 110.5 level.

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