Thursday saw the Canadian dollar climb in value after its top partner for trade and commerce released uplifting economic data, Reuters reports.
The loonie benefited from stronger data in the housing and employment markets of the U.S., a key destination of Canadian exports. Unemployment benefit applications dropped to the five-year low while the pace of housing starts grew to their most rapid speedin four years.
“You have the strong housing data and the stronger payrolls, so you had those two things combined,” chief investment officer Noel Hebert with Concannon Wealth Management told Bloomberg on Thursday. “We’ve been in a narrow range and people have been waiting for a catalyst, and today we have a nice catalyst from macro data, which buoys risk-on sentiment for the loonie.”
Despite two consecutive trading sessions of losses to the greenback closing on Thursday, the loonie also endured challenges after economic data showed foreign investment in Canadian securities slowed down.
Housing starts in the U.S. ran at a pace of 12.1 percent in December, pushing past Bloomberg economists’ forecasts.
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