Canadian Dollar Moves Up As GDP Rises To 1-yr High

The Canadian dollar was higher against its major counterparts in the European session on Friday, as a data showed that Canadian economy expanded at the fastest pace since March 2021 in February.

Data from Statistics Canada showed that real gross domestic product climbed by 1.1 percent in February, following a 0.2 percent increase in January.

Economists had forecast a 0.8 percent growth.

The strong data boosted hopes that the Bank of Canada will deliver another aggressive rate hike at the meeting in June.

Oil prices rose amid prospects of a ban on Russian crude imports to the European Union as Germany has dropped its opposition to the plan.

The loonie climbed to 1.2719 against the greenback, marking a 3-day high. If the loonie rises further, it may find resistance around the 1.25 level.

The loonie touched 1.3388 against the euro, its strongest level since April 2015. On the upside, 1.32 is likely seen as the next resistance level for the loonie.

The loonie rebounded to 0.9103 against the aussie, from a low of 0.9143 it touched at 7:35 am ET. The loonie is seen finding resistance around the 0.90 level.

The loonie was higher against the yen, with the pair trading at 102.41. The next possible resistance for the loonie is seen around the 105.00 level.

Looking ahead, University of Michigan's final consumer sentiment index for April will be featured in the New York session.