Canadian dollar is finding support in recent economic data today. Loonie is up against its major counterparts, including the greenback, as better news out of Canada supports the currency, and as a touch of risk appetite provides demand for yield.
Recent economic data out of Canada has been somewhat encouraging. Statistics Canada released a report that showed building permits rose in May, rising a seasonally adjusted 4.5 per cent, rather than falling 6 per cent. On top of that, oil prices remain solidly above $100 a barrel (thanks in large part to tensions in the Middle East), and that is providing a measure of support to the loonie.
Even with this good news, though, the US dollar is retaining some of its strength. CIBC analysts expect the loonie to remain somewhat weak against the greenback through this year, and that parity won’t be reached again until 2014.
For today, though, the Canadian dollar is holding its own against its major counterparts, eking out gains as its economic situation manages to stay afloat, and as the data shows that Canada is still in better shape than the eurozone or the United Kingdom.
At 13:22 GMT USD/CAD is down to 1.0518 from the open at 1.0559. EUR/CAD is down to 1.3529 from the open at 1.3587. GBP/CAD is down to 1.5650 from the open at 1.5784.
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