Investing.com - The U.S. dollar rose to one-month highs against its Canadian counterpart on Friday, after mostly positive U.S. inflation data and ahead of a speech by Federal Reserve Chair Janet Yellen, while mixed Canadian data weighed on the local currency.
USD/CAD hit 1.2269 during early U.S. trade, the pair's highest since April 23; the pair subsequently consolidated at 1.2279, gaining 0.65%.
The pair was likely to find support at 1.2130, the low of May 19 and resistance at 1.2329, the high of April 16.
In a report, the Department of Labor said that the U.S. consumer price index rose 0.1% in April, in line with expectations and after a 0.2% gain the previous month.
Year-on-year, consumer prices slipped 0.2% last month however, compared to expectations for a 0.1% downtick, following a 0.1% fall in March.
The core consumer price index, which excludes food and energy, rose 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% gain the previous month.
The report came after a string of downbeat U.S. data on Thursday had fuelled fresh uncertainty over the strength of the economy.
Meanwhile, Statistics Canada reported that retail sales increased by 0.7% in March, beating expectations for a 0.3% rise. Core retail sales, which exclude automobiles, rose 0.5% in March, compared to expectations for a 0.4% uptick.
A separate report showed that Canada's consumer prices slipped 0.1% in April, confounding expectations for a 0.1% rise.
Year-on-year, consumer prices gained 0.8% last month, disappointing expectations for an increase of 1.0%.
The loonie was steady against the euro, with EUR/CAD at 1.3560.
The single currency found support earlier, after the Ifo Institute said that its German business climate index ticked down to 108.5 this month from 108.6 in April, compared to expectations for a decline to 108.3.
The euro also strengthened after European Central Bank President Mario Draghi said at a conference in Portugal that the ECB's policies have helped the euro zone's economy to recover.
"The economic outlook for the euro area is brighter today than it has been for seven long years. Monetary policy is working its way through the economy. Growth is picking up. And inflation expectations have recovered from their trough," he said.