Investing.com - The U.S. dollar dropped against its Canadian counterpart on Friday, as strong Canadian economic growth data boosted the local currency, while investors were eyeing upcoming U.S. economic reports.
USD/CAD hit 1.3110 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3093, shedding 0.39%.
The pair was likely to find support at 1.3043, Thursday’s low and resistance at 1.3271, the high of September 28.
Statistics Canada said the country’s gross domestic product rose 0.5% in July, exceeding expectations for a 0.3% uptick and following a growth rate of 0.6% the previous month.
In the U.S., the Commerce Department said personal spending was unchanged in August from the prior month, below expectations for a 0.1% rise, and compared to a 0.4% gain in July.
Investors were still awaiting the release of U.S. consumer sentiment data, as well as report on manufacturing activity in the Chicago area for further indications on the strength of the economy.
The loonie was higher against the euro, with EUR/CAD declining 0.43% to 1.4683.
The single currency weakened after official data earlier showed that the euro zone’s consumer price inflation rose by a 0.4% this month, in line with forecasts and following a final reading of a 0.2% advance in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, increased by 0.8% in September, compared to expectations for a 0.9% gain and the previous month’s 0.8% increase.
The report came shortly after data showed that German retail sales fell 0.4% in August, disappointing expectations for a 0.3% slip.