Canadian Dollar Climbs After Strong GDP Data

By | September 28, 2018

The Canadian dollar reinforced against its crucial equivalents in the early New York session on Friday, after a data showed that the Canadian economy grew more than projection in July.

Information from Stats Canada showed that the gross domestic product increased 0.2 percent on a seasonally changed regular monthly basis in July.

This was greater than expectations for a 0.1 percent rise. The financial development stagnated in June.

Separate data revealed that the commercial product price index dropped in August, driven by lower rates for main non-ferrous metal items.

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 United States and Mexico.

U.S. Trade Representative Robert Lighthizer recently stated the U.S. is prepared to continue with the deal changing the North American Free Trade Arrangement without Canada.

The currency has been selling a favorable area versus its significant counterparts in the European session

The loonie advanced to a 9-day high of 0.9362 versus 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 discovering resistance around the 89.5 area.

Information from the Ministry of Land, Infrastructure, Transport and Tourist revealed that Japan’s housing begins increased for the first time in three months in August.

Real estate begins 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 being up to 1.5187 at 5:45 pm ET. If the loonie extends rally, 1.48 is possibly seen as its next resistance level.

Flash information from Eurostat revealed that Eurozone inflation accelerated in September on food and energy costs.

Inflation rose partially to 2.1 percent, in line with expectations, from 2 percent a month back.

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

Information from the Commerce Department showed that U.S. personal income rose somewhat less than expected in the month of August, while individual costs increased in line with financial expert quotes.

The report stated individual earnings climbed by 0.3 percent in August, matching the boost seen in July. Economists had actually anticipated earnings to rise by 0.4 percent.

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

The product has been offered by InstaForex Business – www.instaforex.com

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