2023.01.2711:26:00UTC+00Canadian Dollar Advances Amid Higher Oil Prices

The Canadian dollar climbed against its major opponents in the European session on Friday, as better-than-expected U.S. GDP data lifted oil prices.

Crude for March delivery rose $1.12 to $82.13 per barrel.

Higher-than-expected GDP numbers from the U.S. raised hopes of a soft landing for the economy, despite an aggressive monetary tightening path pursued by the Fed.

Investors await U.S. core personal consumption expenditure price index, the Federal Reserve's preferred measure of inflation, due out at 8:30 am ET.

Expectations are for the index to rise by 4.4 percent year-on-year in December, slowing from a 4.7 percent increase in the previous month.

The loonie reached 1.4490 against the euro, its highest level since January 18. The currency is likely to challenge resistance around the 1.42 level.

The loonie recovered to 0.9461 against the aussie and 1.3312 against the greenback, off its early lows of 0.9499 and 1.3347, respectively. The loonie may test resistance around 0.92 against the aussie and 1.32 against the greenback.

The loonie rebounded modestly against the yen, with the pair trading at 97.54. If the loonie rises further, it may locate resistance around the 100.00 level.

Looking ahead, University of Michigan's final consumer sentiment index for January and personal income and spending data and pending home sales for December will be featured in the New York session.