Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, despite the release of disappointing U.S. economic growth data as expectations for a U.S. rate hike continued to support and as lower oil prices weighed on the Canadian currency.
USD/CAD hit 1.3048 during early U.S. morning trade, the session high; the pair subsequently consolidated at 1.3056, gaining 0.59%.
The pair was likely to find support at 1.2890, the low of May 18 and resistance at 1.3191, the high of May 24 and a six-week high.
Official data showed that the second estimate of U.S. first quarter gross domestic product rose 0.8%, revised up from the initial reading of a 0.5% rise. Analysts had expected growth to settle at 0.9%.
Investors were eyeing comments by Fed Chair Janet Yellen due later Friday, for futher hints on the timing of future rate hikes by the U.S. central bank.
The greenback posted sharp gains earlier in the week amid expectations for the Fed to raise interest rates in the near term after last week’s April Fed meeting minutes flagged a possible rate hike if the economy continues to improve.
Meanwhile, the commdoity-related Canadian dollar weakened as oil prices turned lower on Friday amid fresh global supply glut concerns.
The loonie was lower against the euro, with EUR/CAD rising 0.22% to 1.4558.