The Canadian dollar advanced against the currencies of U.S and Japan during early European deals on Wednesday as investors await Canada’s GDP report for April.
However, the Canadian dollar pared its recent gains against the euro.
The Canadian GDP report has been slated for release at 8:30 am ET.
The Canadian dollar advanced against the currencies of Japan and U.S. during Wednesday’s early European deals. As of now, the loonie is trading at 84.55 against the yen and 1.0491 against the U.S. dollar, compared to yesterday’s closing quotes of 84.04 and 1.0548. On the upside, the loonie may target 86.62 against the yen and 1.032 against the greenback.
Markit Economics said today that the Japan Nomura / JMMA manufacturing purchasing managers’ index stood at a seasonally adjusted 53.9 in June, down from 54.7 in the previous month. This marks the twelfth straight month in which the manufacturing sector has recorded growth.
The Canadian dollar that climbed against the common currency of Europe during Wednesday’s early European deals pared its gains after reaching a high of 1.2819 at 4:40 am ET. Currently, the loonie is trading at 1.2854 against the euro. If the loonie drops further, it may target 1.290 in near term.
Eurozone annual inflation eased to 1.4% in June from 1.6% in May, according to a flash estimate issued by Eurostat today, the statistical office of the European Union. This came slightly below analyst forecasts for a 1.5% inflation rate.
In Germany, the unemployment decreased 21,000 in June following a revised decline of 41,000 in May, data released by the Federal Labor Agency showed today. The number of unemployed decreased for the twelfth consecutive month. Economists had forecast a decline of 30,000. But, the jobless rate remained unchanged at 7.7%.
Besides the euro-zone CPI and German unemployment data, few reports, which include Italian business confidence data for June and PPI for May and the preliminary CPI data for June were released today. But these reports failed to make any significant impact on the euro’s move.
The U.S. ADP National Employment report and the results of the Institute of Supply Management-Chicago’s business survey – both for June have been slated for release in the New York morning.