Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Friday, after the release of tepid Canadian inflation data, although Federal Reserve Chairman Ben Bernanke's recent comments continued to weigh on the greebnack.
USD/CAD hit 1.0391 during early U.S. morning trade, the session high; the pair subsequently consolidated at 1.0386, easing up 0.08%.
The pair was likely to find support at 1.0327, the low of July 11 and resistance at 1.0439, Thursday's high.
Official data showed that core consumer price inflation in Canada, which excludes the eight most volatile items, fell 0.2% in June, less than the expected 0.3% decline, after a 0.2% rise.
Consumer price inflation was flat last month, confounding expectations for a 0.2% rise, after a 0.2% gain in May.
In his second day of testimony on monetary policy before the Financial Services Committee in Congress, Bernanke reiterated that monetary policy will remain highly accommodative, even as the central bank starts to pare back its bond buying.
On Wednesday, Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”
He added that the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.
The loonie was lower against the euro with EUR/CAD adding 0.11%, to hit 1.3621.
Trading volumes were expected to remain light on Friday, as no U.S. data was scheduled to be released throughout the day.
USD/CAD hit 1.0391 during early U.S. morning trade, the session high; the pair subsequently consolidated at 1.0386, easing up 0.08%.
The pair was likely to find support at 1.0327, the low of July 11 and resistance at 1.0439, Thursday's high.
Official data showed that core consumer price inflation in Canada, which excludes the eight most volatile items, fell 0.2% in June, less than the expected 0.3% decline, after a 0.2% rise.
Consumer price inflation was flat last month, confounding expectations for a 0.2% rise, after a 0.2% gain in May.
In his second day of testimony on monetary policy before the Financial Services Committee in Congress, Bernanke reiterated that monetary policy will remain highly accommodative, even as the central bank starts to pare back its bond buying.
On Wednesday, Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”
He added that the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.
The loonie was lower against the euro with EUR/CAD adding 0.11%, to hit 1.3621.
Trading volumes were expected to remain light on Friday, as no U.S. data was scheduled to be released throughout the day.