Canadian Dollar Strengthens After Robust Canada GDP Data
July 28 2017 - 06:01AM
RTTF2
The Canadian dollar firmed against its major counterparts in
early New York deals on Friday, as a data showed that the Canadian
economy expanded more than forecast in May, supporting hopes for
another rate rise from the Bank of Canada this year.
Data from Statistics Canada showed that the GDP rose 0.6 percent
to C$1.73 trillion on a seasonally adjusted monthly basis,
following a 0.2 percent uptick in April.
Economists had forecast the index to match the April
reading.
Crude oil futures rose ahead of the Baker Hughes U.S. rig count
data due at 1.00 pm. In the prior week, the North American Rig
Count was 1156 and U.S. rig count was 950.
Crude for September delivery rose $0.27 to $49.31 per
barrel.
The loonie has been trading in a positive territory in the
European session.
The loonie climbed to 1.2440 against the greenback, after having
dropped to 1.2567 at 1:00 am ET. The loonie is likely to find
resistance around the 1.23 region.
Data from the Commerce Department showed that U.S. economic
activity increased in line with economist estimates in the second
quarter.
The report said real gross domestic product climbed by 2.6
percent in the second quarter after rising by a downwardly revised
1.2 percent in the first quarter.
The loonie strengthened to a 2-day high of 0.9930 versus the
aussie, following an 8-day low of 1.0024 of hit at 3:00 am ET. The
next possible resistance for the loonie is seen around the 0.97
mark.
Data from the Australian Bureau of Statistics showed that
Australia's producer prices rose 0.5 percent on quarter in the
second quarter of 2017 - unchanged from the previous three
months.
On a yearly basis, producer prices jumped 1.7 percent -
accelerating from 1.3 percent in the three months prior.
The loonie advanced to 1.4600 against the euro and 89.23 against
the yen, off its early more than 2-week low of 1.4714 and a 4-day
low of 88.33, respectively. On the upside, 1.43 and 92.00 are
likely seen as the next resistance levels for the loonie against
the euro and the yen, respectively.
Looking ahead, U.S. University of Michigan's final consumer
sentiment index for July and U.S. Baker Hughes rig count data are
slated for release shortly.
At 1:20 pm ET, Federal Reserve Bank of Minneapolis President
Neel Kashkari is expected to speak at a town hall event, in
Minnesota.
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