Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Friday, after positive U.S. data added to optimism over the strength of the U.S. economy, while a downbeat report from Canada dented demand for the local currency.
USD/CAD hit 1.3087 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3081, up 0.19%.
The pair was likely to find support at 1.2955, Thursday's low and resistance at 1.3157, the high of August 12.
Official data showed that U.S. industrial production rose 0.6% in July, exceeding expectations for a 0.3% gain. Industrial production rose 0.1% in June, whose figure was revised from a previously estimated increase of 0.3%.
A separate report showed on Friday that U.S. producer prices rose 0.2% in July, beating expectations for an uptick of 0.1%, after a 0.4% gain the previous month.
The positive reports added to expectations for a September rate hike by the Federal Reserve.
In Canada, data showed that manufacturing sales rose 1.2% in June, disappointing expectations for a 2.1% gain.
Manufacturing sales ticked up 0.2% in May, whose figure was revised from a previously estimated 0.1% rise.
The loonie was steady against the euro, with EUR/CAD at 1.4563.
In the euro zone, data on Friday showed that gross domestic product rose 0.3% in the second quarter, confounding expectations for a growth rate of 0.4%. Year-on-year, the euro zone economy grew by a rate of 1.2% in the three months to June, compared to expectations for 1.3%.
A separate report showed that the bloc's consumer price index fell 0.6% in July, in line with expectations and after a flat reading the previous month.