The Canadian dollar on Wednesday drove beyond $1.01 against the U.S. dollar, marking the first time achieving that mark since May. But Canada is preparing to release economic data on Thursday that is projected to benefit the loonie.
"There wasn't a big reaction to currency markets and it's really difficult to see what's going to move the Canadian dollar ahead of tomorrow's [consumer price index] number," senior economist and foreign exchange strategist Benjamin Reitzes with BMO Capital Markets in Toronto told The Wall Street Journal on Thursday. "It seems that we're in the dog days of summer here."
The performance of the monetary unit of Canada has been very similar to that of the U.S. dollar, which has benefited from stronger economic data in the globe's largest economy. The greenback climbed on Wednesday in response to economic data indicating industrial production grew in July the most since April.
But advances for the monetary unit of Canada were tempered by data showing manufacturing sales fell 0.4 percent in June, according to The Wall Street Journal.