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Forex - USD/CAD rises but gains limited after U.S., Canadian data

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Investing.com -

Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, but gains were expected to remain limited after Canadian economic growth data came out in line with expectations, while U.S. personal spending data disappointed.

USD/CAD hit 1.0865 during European afternoon trade, the session high; the pair subsequently consolidated at 1.0862, adding 0.25%.

The pair was likely to find support at 1.0817, the low of May 9 and resistance at 1.0909, the high of May 23.

Official data showed that Canada gross domestic product expanded by 0.1% in March, in line with market expectations, after a 0.2% expansion in February.

A separate report showed that raw materials prices rose 0.1% in April, disappointing expectations for a 1.2% increase, after an upwardly revised 0.7% gain the previous month.

In the U.S., data showed that personal spending fell 0.1% last month, compared to expectations for a 0.2% rise, after a 1% increase in March, whose figure was revised from a previously estimated 0.9% gain.

U.S. core ersonal consumption expenditures, which exclude food and energy, rose 0.2% in April, in line with expectations, after a 0.2% increase the previous month.

The reports came a day after the Bureau of Economic Analysis on Thursday said U.S. gross domestic product contracted 1.0% in the first quarter, after the preliminary estimate showed growth of 0.1%.

The loonie was lower against the euro, with EUR/CAD gaining 0.35% to 1.4793.

Later in the day, the U.S. was to release revised 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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