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Forex - USD/CAD edges higher but gains capped

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Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Friday, ahead of U.S. consumer sentiment data, but the greenback remained under pressure as Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh.

USD/CAD hit 1.0395 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0383, adding 0.15%.

The pair was likely to find support at 1.0272, the low of June 20 and resistance at 1.0488, the high of June 21.

Demand for the greenback remained under pressure after Bernanke on Wednesday said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.

The comments came after the minutes of the central bank's June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

Earlier Friday, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month.

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May.

The loonie was higher against the euro with EUR/CAD shedding 0.31%, to hit 1.3535.

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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