Canadian Dollar Climbs After Strong GDP Data

Canadian Dollar Climbs After Strong GDP Data

The Canadian dollar strengthened against its key counterparts in the early New York session on Friday, after a data showed that the Canadian economy grew more than forecast in July.

Data from Statistics Canada showed that the gross domestic product increased 0.2 percent on a seasonally adjusted monthly basis in July.

This was higher than expectations for a 0.1 percent rise. The economic growth stagnated in June.

Separate data showed that the industrial product price index dropped in August, driven by lower prices for primary non-ferrous metal products.

The IPPI dropped 0.5 percent in August following a 0.2 percent decrease in July.

Meanwhile, the U.S. and Canada approach a September 30th deadline to reach an agreement for Canada to join a trade deal struck between the U.S. and Mexico.

U.S. Trade Representative Robert Lighthizer recently said the U.S. is prepared to move ahead with the deal replacing the North American Free Trade Agreement without Canada.

The currency has been trading in a positive territory against its major counterparts in the European session

The loonie advanced to a 9-day high of 0.9362 against the aussie, from a low of 0.9408 hit at 2:00 am ET. The next possible resistance for the loonie is seen around the 0.92 level.

The loonie reversed from an early low of 86.89 against the yen, touching a weekly high of 87.44. The loonie is seen finding resistance around the 89.5 area.

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts increased for the first time in three months in August.

Housing starts advanced 1.6 percent in August from last year, reversing a 0.7 percent drop in July. Orders were forecast to climb 0.4 percent.

The loonie extended rally to more than a 5-week high of 1.5017 against the euro, after falling to 1.5187 at 5:45 pm ET. If the loonie extends rally, 1.48 is possibly seen as its next resistance level.

Flash data from Eurostat showed that Eurozone inflation accelerated in September on food and energy prices.

Inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent a month ago.

The loonie hit a 2-day high of 1.2971 against the greenback, reversing from a low of 1.3048 hit at 5:45 pm ET. On the upside, 1.27 is likely seen as the next resistance for the loonie.

Data from the Commerce Department showed that U.S. personal income rose slightly less than expected in the month of August, while personal spending increased in line with economist estimates.

The report said personal income climbed by 0.3 percent in August, matching the increase seen in July. Economists had expected income to rise by 0.4 percent.

Looking ahead, University of Michigan's final consumer sentiment index for September is set for release shortly.

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