Loonie advances against the dollar after data shows GDP surpassed expectations

The value of the Canadian dollar increased against the U.S. dollar on Friday after economic data indicated Canada's economy developed more rapidly than forecast, according to Reuters.

Uplifting economic data released by Europe also prompted the upward drive of the loonie as did a remark by a member of the European Central Bank, which noted the financial institution intends to intervene and confront the sovereign debt crisis. The gross domestic product of Canada developed at 1.8 percent during the second quarter of this year, according to Statistics Canada.

"It's slightly better than expected so it might give the currency a bit of a boost, especially given the fact that underlying financial markets are relatively firm this morning, but I don't think the GDP report is going to make a lasting impact on the currency," deputy chief economist Doug Porter with BMO Capital Markets told Reuters.

Benoit Coeure with the ECB said its purchases need to be subject to strict conditions.

The annualized pace of the nation's economy developed at 1.8 percent, which pushed past expectations of advances of 1.6 percent, according to The Wall Street Journal.