Investing.com - The U.S. dollar trimmed losses against its Canadian counterpart on Friday, bouncing off a one-week low hit after the release of positive Canadian inflation data, although the minutes of the Federal Reserve’s most recent policy meeting continued to weigh on the greenback.
USD/CAD eased off 1.3058, the pair’s lowest since February 16, to hit 1.3095 during early U.S. trade, steady for the day.
The pair was likely to find support at 1.3007, the low of February 16 and resistance at 1.3172, Thursday’s high.
Statistics Canada reported on Friday that the consumer price index rose 0.9% last month, beating expectations for an uptick of 0.3% and after a 0.2% fall in December.
Year-on-year, consumer prices advanced 2.1% last month, compared to expectations for a 1.6% rise.
Core CPI, which excludes the eight most volatile items, gained 0.5% in January, compared to expectations for a 0.1% slip.
But the commodity-related Canadian dollar’s gains were limited as oil prices turned lower on Friday, weighed by a rise in U.S. crude inventories last week.
In the U.S., the minutes of the Fed’s January policy meeting showed on Wednesday that policymakers thought it may be appropriate to raise interest rates again "fairly soon."
However, the minutes also revealed the central bank’s uncertainty over the lack of clarity of the Trump administration's economic program, dampening demand for the greenback.
The loonie was steady against the euro, with EUR/CAD at 1.3859.