Canadian Dollar Rises Amid Risk Appetite
December 01 2023 - 12:37AM
RTTF2
The Canadian dollar strengthened against other major currencies
in the European session on Friday amid risk appetite, as signs of
easing inflation in the U.S. and the euro zone raised optimism over
possible interest rate cuts earlier next year.
Speculations rose that the U.S. Federal Reserve will start
reducing interest rates from the first quarter of next year.
Softer than expected eurozone inflation data also raised hopes
the European Central Bank will begin cutting rates from early next
year.
Investors await Federal Reserve Chair Jerome Powell's remarks
later in the day for additional clues on the rate outlook.
Encouraging U.K. house price data also boosted sentiment.
U.K. house prices rose by 0.2 percent in November, marking the
third successive monthly increase, the latest Nationwide house
price index revealed.
A survey showed Eurozone factory downturn remained strong in
November, but reductions in output, new orders and inventories
eased.
The HCOB Eurozone Manufacturing PMI, compiled by S&P Global,
improved to 44.2 from 43.1 in October.
In the European trading, the Canadian dollar rose to more than a
2-month high of 1.3518 against the U.S. dollar and a 4-day high of
109.56 against the yen, from early lows of 1.3558 and 109.03,
respectively. If the loonie extends its uptrend, it is likely to
find resistance around 1.33 against the greenback and 111.00
against the yen.
Against the euro, the loonie climbed to a 3-week high of 1.4728
from an early low of 1.4780. The loonie may test resistance around
the 1.44 region.
The loonie edged up to 0.8941 against the Australian dollar,
from an early low of 0.8974. On the upside, 0.88 is seen as the
next resistance level for the loonie.
Looking ahead, Canada jobs data for November and manufacturing
PMI data for November, U.S. PMI data for November, construction
spending for November and U.S. Baker Hughes rig count data are due
to be released in the New York session.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From May 2024 to Jun 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jun 2023 to Jun 2024