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Better Economic Data Boosts Loonie

March 14, 2013 at 15:22 by Miranda Marquit

LooniesBetter news in the United States and in Canada is helping the loonie today. Between unexpectedly low jobless claims in the United States, and higher housing prices in Canada, plus events around the world resulting in risk-on sentiment today, the loonie is heading mostly higher today.

Canadian dollar is up against most of its trading counterparts today, thanks in large part to improved sentiment around the world. The latest initial jobless claims data in the United States fell to 332,000 last week, indicating that the US labor market is preparing to pick up the pace — along with the economy. (Of course, there’s still a budget battle to worry about.)

In Canada, StatsCan reports that the new home price index rose 0.1 per cent in January. While that’s not as high as the January 2012 increase of 2.2 per cent, it still indicates that the Canadian economy is managing to hold on. The price index was led by a 0.3 per cent new home price gain in Toronto.

With more stimulus assumed for Japan, as Kuroda is approved by the lower house of parliament as the next BOJ head, and with more efforts to keep the global economy moving in the near future, it’s risk-on today. And that helps the Canadian dollar.

At 15:19 GMT USD/CAD is down to 1.0271 from the open at 1.0280. EUR/CAD is down to 1.3325 from the open at 1.3326. GBP/CAD is up to 1.5430 from the open at 1.5340.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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