Canadian Loonie Gains on Upbeat Data

The Canadian loonie gained against its counterpart, the US dollar on upbeat data on Tuesday.

The USD/CAD fell 0.17 percent at 1.2277 in early morning trading after official data by the Canadian authorities showed that manufacturing sales fell 2.6 percent in July, against forecasts of a 1.6 percent decline. The Canadian dollar was also lifted by the recent global supply and demand for oil of which Canada is a major exporter.

Against the euro the loonie dipped, EUR/CAD gained 0.12 percent at 1.4717.

US Data

Data released by the US Commerce Department showed an unexpected fall in the amount of housing starts with building permits up. In other reports, US import prices made their biggest gain for the past seven months in August. Whilst the current deficit grew more than forecast in the second quarter.

Investors Focus Ahead on Fed

Investors are now focusing on data this coming Thursday, following the Feds two day policy meeting which may give some clue as to the US central bank plans on any future interest rate hikes. Also any news of when they plan to start unwinding their balance sheet.

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