Canadian Dollar Advances On Risk Appetite, Oil Strength
February 16 2018 - 12:17AM
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The Canadian dollar climbed against its major counterparts in
the early European session on Friday, as European stocks extended
rally on solid earnings and oil prices advanced amid weakness in
dollar.
Investors shrugged off the possibility of higher inflation and
more interest rate hikes from the Federal Reserve.
Shares in Renault rallied 2.5 percent after it posted record
sales and earnings for 2017.
In economic front, U.S. housing starts for January and
University of Michigan's preliminary consumer sentiment data for
February are due later in the day.
The U.S. dollar remained on the defensive, amid lingering
worries over massive deficit in the wake of infrastructure spending
and large corporate tax cuts announced by Trump administration.
A weak dollar tends to raise appeal of dollar-denominated
commodites.
Crude for April delivery rose $0.53 to $61.70 per barrel.
The loonie rose to an 11-day high of 1.2451 against the
greenback, from Thursday's closing value of 1.2479. The loonie is
seen finding resistance around the 1.22 level.
The loonie advanced to 1.5577 against the euro, off its early
2-year low of 1.5649. If the loonie extends rise, 1.54 is seen as
its next resistance level.
Data from Destatis showed that Germany's wholesale price
inflation accelerated slightly in January, after easing in the
previous three months.
Wholesale prices climbed 2.0 percent year-over-year in January,
faster than the 1.8 percent rise in December.
The loonie recovered to 85.12 against the yen, from an early
2-day low of 84.69. The next possible resistance for the loonie is
seen around the 86.5 mark.
On the flip side, the loonie dropped to more than a 2-week low
of 0.9952 against the aussie and held steady thereafter. The pair
finished yesterday's deals at 0.9911.
Looking ahead, U.S. housing starts, building permits and import
price index for January and University of Michigan's preliminary
consumer sentiment for February as well as Canada manufacturing
sales for December will be out in the New York session.
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