The Canadian dollar gained ground against its major rivals in early trading on Friday. The petro-dependent loonie gained as light sweet crude for March delivery rose 6 cents to $34.08 a barrel in pre-market electronic trading on the New York Mercantile Exchange, after falling to its lowest price this year on Thursday.
The Canadian dollar rose to a 3-day high of 1.2284 against the greenback by 4:55 am ET, compared to Thursday's close of 1.2440. The Canadian currency is currently trading at 1.2348 versus the buck and the next downside target level for the loonie is seen around 1.223.
Traders are now looking ahead of the New York session, in which the Reuters/University of Michigan's preliminary report on the consumer sentiment index for February has been scheduled for release. Consumer confidence is expected to tick down in the month, with economists forecasting a marginal decline to 61.5 in February from 61.2 in the previous month.
Against the Japanese yen also, the loonie edged up to a 3-day high in early trading on Friday. The Canadian dollar rose to 74.75 versus the yen by 4:55 am ET and the pair is presently trading at 74.19. The loonie-yen pair was worth 73.15 at yesterday's close and on the upside, resistance is seen around the 75 level for the loonie.
The Canada's loonie advanced to 1.585 against the euro, the highest level since 10th of this month. If the Canadian dollar ticks up further, it is likely to target near the 1.582 level. The euro-loonie pair, which closed yesterday's deals at 1.60, is currently trading at 1.5884.
The euro weakened in early European trading as reports showed that major European economies contracted further in the fourth quarter of 2008.
The Euro zone economy contracted 1.5% sequentially in the fourth quarter, larger than the 0.2% decline seen in the third quarter. Economists were expecting a sequential fall of 1.3%. Compared with the same quarter of the previous year, seasonally adjusted GDP decreased 1.2% in the fourth quarter, reversing an increase of 0.6% in the third quarter.
French gross domestic product, or GDP, fell 1.2% in the fourth quarter from the third quarter. In the third quarter, the economy grew 0.1%.
The German economy contracted 2.1% in the fourth quarter, the largest quarter-on-quarter decrease ever recorded in united Germany. The economy shrank 0.5% each in the second and third quarters of 2008. Economists were expecting a decline of 1.8% in the fourth quarter.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.