The Canadian dollar gains amid rising oil prices

The Canadian dollar gains amid rising oil prices

The Canadian dollar rose against its major opponents in Friday’s European session as better-than-expected US GDP data lifted oil prices.

Crude for March delivery rose $1.12 to $82.13 a barrel.

Stronger-than-expected GDP figures in the United States raised hopes of a soft landing for the economydespite an aggressive monetary tightening path pursued by the Fed.

Investors await the U.S. Core Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred gauge of inflation, due out at 8:30 a.m. ET.

The index is expected to rise 4.4% year-on-year in December, slowing from a 4.7% increase the previous month.

The loonie reached 1.4490 against the euro, its highest level since January 18th. The currency is expected to challenge the resistance around the 1.42 level.

The loonie rallied to 0.9461 against the Aussie and 1.3312 against the greenback after early lows of 0.9499 and 1.3347, respectively. The loonie could test resistance around 0.92 against the Aussie and 1.32 against the greenback.

The loonie rebounded modestly against the yen, with the pair trading at 97.54. If the loonie rises further, it might locate resistance around the 100.00 level.

Looking ahead, the University of Michigan’s final consumer sentiment index for January and data on personal income and spending and pending home sales for December will be presented during the New York session.

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