Canadian Dollar Advances As Oil Prices Rise

(RTTNews) - The Canadian dollar climbed against its major counterparts in the European session on Thursday, as oil prices traded higher after forecasts of tight supply in coming months.

The upside, however, remained capped by data showing an unexpected jump in U.S. crude inventories.

Benchmark Brent crude futures rose half a percent to $92.36 a barrel, while WTI crude futures were up 0.6 percent at $89.01.

Analysts say that the fundamental picture remains bullish due to rising oil demand and OPEC+ cuts to production.

The recent forecasts by the Organization of the Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA) also indicated tight supply in the coming months.

The loonie rose to 108.93 against the yen and 1.3525 against the greenback, off its early lows of 108.59 and 1.3554, respectively. The currency is seen facing resistance around 110.00 against the yen and 1.32 against the greenback.

The loonie edged up to 0.8692 against the aussie, off an early 2-day low of 0.8733. Next key resistance for the currency may be located around the 0.84 level.

The loonie touched 1.4514 against the euro, setting a 2-day high. On the upside, 1.43 is possibly seen as its next resistance level.

Looking ahead, the European Central Bank will announce its monetary policy decision at 8:15 am ET. Markets widely expect the ECB to hike the key rate by a final quarter point.

Canada wholesale sales data for July, U.S. weekly jobless claims for the week ended September 9 and retail sales and producer prices for August and business inventories for July are slated for release in the New York session.