Canadian Dollar Climbs Amid Risk Appetite
April 17 2018 - 3:43AM
RTTF2
The Canadian dollar was higher against its major counterparts in
the European session on Tuesday, as European shares rose amid
easing Syria tensions as investors bet that last week's U.S.-led
missile strikes on the country would not lead to a broader
escalation in the conflict.
Traders also remained optimistic about the earnings season, with
results from Goldman Sachs and IBM due today.
Chinese economic data proved to be a mixed bag, with GDP rising
in line with forecasts, while industrial production missed
expectations.
Official data showed that the country's gross domestic product
or GDP rose 6.8 percent in the first quarter on a yearly basis - in
line with expectations and down from 6.9 percent in the previous
quarter.
Oil prices rose ahead of U.S. crude inventory data amid looming
worries about the Middle East.
The American Petroleum Institute releases weekly crude inventory
data later in the day, followed by the official data from the
Energy Information Administration on Wednesday.
Crude for May delivery rose $0.03 to $66.25 per barrel.
The currency showed mixed trading against its major counterparts
in the Asian session. While it fell against the euro and the yen,
it held steady against the greenback. Against the aussie, the
currency rose.
The loonie advanced to a 6-day high of 1.2549 against the
greenback, off its early low of 1.2579. The next possible
resistance for the loonie is seen around the 1.23 level.
Reversing from an early low of 1.5591 against the euro, the
loonie climbed to a 4-day high of 1.5515. If the loonie rises
further, 1.54 is possibly seen as its next resistance level.
Survey data from the Mannheim-based think tank ZEW showed that
German economic confidence declined sharply in April.
The ZEW Indicator of Economic Sentiment dropped to -8.2 in April
from +5.1 in March. The score was forecast to fall to -1.
The loonie bounced off to 85.34 against the yen, from a low of
85.06 hit at 4:30 am ET. On the upside, 88.00 is likely seen as the
next resistance for the loonie.
The loonie strengthened to a 5-day high of 0.9751 against the
aussie, from a low of 0.9783 hit at 4:30 am ET. The loonie is
poised to find resistance around the 0.96 region.
Minutes from the Reserve Bank of Australia's April 3 meeting
showed that members of board said that the country's economy is
expected to continue on its gradual path of growth.
The country's inflation rate is also expected to pick up
gradually, the bank said, while global economic conditions remain
positive.
Looking ahead, U.S. industrial production for March is scheduled
for release shortly.
At 10:00 am ET, Federal Reserve Governor Randal Quarles will
testify on supervision and regulation before the House Financial
Services Committee in Washington DC.
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