Canadian Dollar Climbs Amid Risk Appetite
August 08 2022 - 6:56AM
RTTF2
The Canadian dollar strengthened against its most major
counterparts in the European session on Monday amid risk appetite,
as strong U.S. jobs data suggested that the economy is likely avoid
a hard landing despite aggressive Fed tightening to control
inflation.
The U.S. economy added more jobs than expected in July and the
unemployment rate fell, dispelling the fears about a potential
recession.
Investors await the release of key U.S. inflation data due later
this week.
The headline inflation is seen slowing to 8.7 percent
year-on-year in July, down from 9.1 percent in the prior month.
Better-than-expected Chinese trade data released over the
weekend eased concerns about the economic outlook.
The loonie advanced to 4-day highs of 1.2839 against the
greenback and 1.3099 against the euro, after falling to 1.2950 and
1.3172, respectively in early deals. The next possible resistance
for the loonie is seen around 1.25 against the greenback and 1.28
against the euro.
The loonie touched 104.98 against the yen, its highest level
since July 29. On the upside, 106.00 is possibly seen as the next
resistance level for the loonie.
In contrast, the loonie was down against the aussie, at a 6-day
low of 0.9005. The loonie may challenge support around the 0.92
level.
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