Investing.com - The U.S. dollar turned lower against its Canadian counterpart on Friday, pulling away from a one-month peak, as the release of downbeat U.S. inflation data weighed broadly on the greenback.
USD/CAD pulled back from 1.2753, the pair’s highest since July 14, to hit 1.2699 during early U.S. trade, sliding 0.34%.
The pair was likely to find support at 1.2627, the low of August 7 and resistance at 1.2772, the high of July 13.
The dollar weakened after the U.S. Commerce Department said consumer prices rose less-than-expected last month. A separate report released a day earlier showed that producer price inflation and its core reading both unexpectedly declined in July.
The weak data was seen as lowering chances that the Federal Reserve will stick to its plans for a third interest rate hike this year.
The commodity-related Canadian dollar’s gains were likely to remain limited however, as oil prices continued to retreat on Friday, a day after the Organization of the Petroleum Exporting Countries’ reported another rise in production in July.
Meanwhile, market participants also continued to monitor exchanges between North Korea and the U.S.
U.S. President Donald Trump warned the peninsula on Thursday against attacking Guam or U.S. allies and said his first threat to unleash "fire and fury" may have not been tough enough.
North Korea's state media had earlier said that Pyongyang has the capacity develop a plan by mid-August to launch intermediate-range missiles at the U.S. territory of Guam.
In an attempt to dial down the aggressive rhetoric, US Defense Secretary James Mattis said war would be "catastrophic" and that diplomacy was gaining results.
The loonie was steady against the euro, with EUR/CAD at 1.4993.
Add a Comment