2024.01.1612:33:00UTC+00Canadian Dollar Climbs As Oil Prices Inch Higher

The Canadian dollar moved up against its most major counterparts in the European session on Tuesday, as oil prices rose on supply concerns driven by escalating conflict in the Middle East.

Crude for March delivery rose $0.30 to 73.09 per barrel.

Fears of disruptions to Middle East supplies remain after Houthi rebels fired a missile that struck a U.S.-owned ship Monday just off the coast of Yemen in the Gulf of Aden.

Israel's military has ended its "intensive" phase of operations in northern Gaza and will soon do the same in southern Gaza, the country's defense minister has said.

Weekly inventory data from the American Petroleum Institute will be out on Wednesday, given the U.S. market holiday on Monday.

Official inventory data from the U.S. Energy Information Administration will be published on Thursday.

The loonie climbed to a 5-day high of 108.91 against the yen and near a 2-week high of 0.8898 against the aussie, off its early lows of 108.26 and 0.8946, respectively. The loonie may find resistance around 110.00 against the yen and 0.875 against the aussie.

The loonie edged up to 1.4667 against the euro, from an early nearly 5-week low of 1.4726. The loonie is likely to find resistance around the 1.44 level.

In contrast, the loonie fell to near a 5-week low of 1.3500 against the greenback. The loonie is poised to challenge support around the 1.38 level.