Investing.com - The U.S. dollar pulled away from seven-month
highs against its Canadian counterpart on Friday, as strong U.S.
economic growth data strengthened market sentiment, although the
greenback remained supported by the Federal Reserve's recent policy
USD/CAD pulled away from 1.0737, the pair's highest since May, to
hit 1.0702 during early U.S. trade, still up 0.36%.
The pair was likely to find support at 1.0661 and resistance at
Risk sentiment improved as official data showed that U.S. gross
domestic product expanded by 4.1% in the third quarter, above
initial estimates for 3.6% growth.
But the greenback remained supported after the Fed announced
Wednesday that it would reduce its USD85 billion-a-month bond
buying program by USD10 billion in January.
The U.S. central bank reiterated that interest rates are likely to
remain low even after the unemployment rate drops below 6.5%, the
threshold at which the Fed has previously said it would start to
consider rate increases.
In Canada, official data showed that consumer price inflation was
flat in November, compared to expectations for a 0.2% fall. Core
consumer price inflation, which excludes the eight most volatile
items, ticked down 0.1% last month, confounding expectations for a
A separate report showed that retail sales in Canada slipped 0.1%
in October, disappointing expectations for a 0.3% rise. Core retail
sales, which exclude automobiles, increased by 0.4% in October,
compared to expectations for a flat reading.
The loonie was lower against the euro, with EUR/CAD rising 0.24% to
Also Friday, data showed that the Gfk German consumer climate index
rose to 7.6 in December, from a reading of 7.4 the previous month.
Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell
0.1% in November, in line woth expectations, after a 0.2% decline
the previous month.
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