Investing.com - The U.S. dollar rose to six-week highs against its Canadian counterpart on Friday, after tepid consumer price inflation data out of Canada, as expectations for a near-term end to the Federal Reserve's bond-buying program supported demand for the greenback.
USD/CAD hit 1.0569 during early U.S. trade, the pair's highest since July 9; the pair subsequently consolidated at 1.0550, rising 0.30%.
The pair was likely to find support at 1.0472, Thursday's low and resistance at 1.0586, the high of July 8.
In a report, Statistics Canada said core consumer price inflation, which excludes the eight most volatile items, was flat in July, in line with expectations, after a 0.2% decline the previous month.
Consumer price inflation rose 0.1% last month, as expected, following a flat reading in June.
Meanwhile, the greenback remained supported after the minutes of the Fed’s July meeting on Wednesday showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The loonie was lower against the euro with EUR/CAD gaining 0.21%, to hit 1.4078.
Later in the day, the U.S. was to release official data on new home sales.
USD/CAD hit 1.0569 during early U.S. trade, the pair's highest since July 9; the pair subsequently consolidated at 1.0550, rising 0.30%.
The pair was likely to find support at 1.0472, Thursday's low and resistance at 1.0586, the high of July 8.
In a report, Statistics Canada said core consumer price inflation, which excludes the eight most volatile items, was flat in July, in line with expectations, after a 0.2% decline the previous month.
Consumer price inflation rose 0.1% last month, as expected, following a flat reading in June.
Meanwhile, the greenback remained supported after the minutes of the Fed’s July meeting on Wednesday showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The loonie was lower against the euro with EUR/CAD gaining 0.21%, to hit 1.4078.
Later in the day, the U.S. was to release official data on new home sales.