Canadian Dollar Advances On Higher Oil Prices

(RTTNews) - The Canadian dollar climbed against its major counterparts in the European session on Friday, as oil prices rose on receding concerns about inflation and further monetary tightening by the Federal Reserve.

Benchmark Brent crude futures edged up 0.2 percent to $86.27 a barrel, while WTI crude futures were up 0.2 percent at $82.35.

A weaker dollar offered some support as speculators raised their bets of an impending halt to the Fed's rate-hike cycle.

The dollar sharpened its losses to two-year lows after a Labour Department report showed an unexpected decline in U.S. producer prices in March.

Combined with Wednesday's tamer-than-expected consumer price inflation data, the report helped ease concerns about inflation and the outlook for interest rates.

The loonie rebounded against the yen, with the pair trading at 99.49. The currency is seen facing resistance around the 101.00 level.

The loonie touched 1.3314 against the greenback, setting a 2-month high. On the upside, 1.30 is possibly seen as its next resistance level.

The loonie reversed from an early low of 0.9054 against the aussie and edged up to 0.9014. The loonie may find resistance around the 0.89 level.

The loonie rose back to 1.4725 against the euro, heading to pierce its previous 2-day high of 1.4724. Next near term resistance for the currency is likely seen around the 1.45 level.

Looking ahead, Canada manufacturing sales for February, U.S. retail sales, export and import prices and industrial production, all for March, as well as U.S. University of Michigan's preliminary consumer sentiment index for April are due to be released in the New York session.