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Forex - USD/CAD higher after U.S. PPI data, UoM report in focus

Published 06/12/2015, 09:26 AM
© Reuters.  Greenback gains ground vs. loonie ahead of consumer sentiment data
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Investing.com - The U.S. dollar was higher against its Canadian counterpart on Friday, after data showed that U.S. producer prices rose slightly more than anticipated in May and as investors eyed a U.S. consumer sentiment due later in the day.

USD/CAD hit 1.2333 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2343, gaining 0.42%.

The pair was likely to find support at 1.2199, the low of June 10 and resistance at 1.2443, the high of June 9.

In a report, the U.S. Department of Labor said that its producer price index rose 0.5% in May, just above expectations for a 0.4% uptick, after a 0.4% slip the previous month.

Year-on-year, producer prices declined by 1.1% last month, in line with expectations, after a 1.3% drop in April.

Core producer prices, which exclude food and energy, ticked up 0.1% in May, in line with market expectations and following a 0.2% fall in April.

Investors were looking ahead to a preliminary report on U.S. consumer sentiment due later in the trading session, for further indications on the strength of the economy.

The loonie was higher against the euro, with EUR/CAD edging up 0.09% to 1.3849.

The euro remained under pressure after the International Monetary Fund pulled out of Greek debt talks on Thursday as it accused Athens of failing to compromise over labour market and pension reforms.

The IMF said its team of negotiators had quit talks in Brussels after reaching a stalemate and would be returning to Washington.

Greek Prime Minister Alexis Tsipras was scheduled to resume talks in Brussels with European commission President Jean-Claude Juncker on Friday. However, such a meeting is now in doubt.

A government spokesman said Greece's negotiating team is "ready" to intensify efforts to wrap up a deal "even in the next 24 hours."

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