The Canadian dollar strengthened against its key counterparts in New York deals on Wednesday, after data showed that the Canadian economy grew more-than-forecast in July.
Data from Statistics Canada showed that the GDP rose 0.3 percent in July on a monthly basis, compared to a revised 0.4 percent increase in June. Economists were forecasting the economy to expand by 0.2 percent.
Canadian stock market opened higher following the data. The Toronto Stock Exchange’s S&P/TSX composite index rose 148.26 points, or 1.14 percent, to 13,185 from its previous close.
Sentiment was underpinned following strong U.S. private sector jobs growth in September. The data seen as a prelude to Friday’s nonfarm payrolls numbers for September, which includes both public and private sector jobs.
Oil prices rebounded, with crude for November delivery up $0.22 to $45.45 a barrel.
The Energy Information Administration is due to release official crude inventory data at 10:30 am ET.
In the European session, the loonie has been trading in a positive territory against the greenback, yen and the euro. However, it declined against the aussie.
In New York deals, the loonie firmed to a 2-day high of 1.4952 against the euro, off its prior low of 1.5119. The next possible resistance for the loonie may be located around the 1.48 zone.
The loonie was trading higher at 0.9385 against the aussie, reversing from an 8-day low of 0.9436 hit at 8:00 am ET. If the loonie extends advance, 0.93 is likely seen as its next resistance level.
Rebounding from an early low of 89.14 against the Japanese yen, the loonie advanced to a 2-day high of 89.88. On the upside, the loonie may target 91.00 as its next resistance level.
The loonie continued to be higher against the greenback, trading at 1.3385. The loonie finished yesterday’s trading at 1.3419 against the greenback. The loonie is poised to test resistance around the 1.32 region.
The material has been provided by InstaForex Company – www.instaforex.com