Investing.com - The U.S. dollar climbed against its Canadian counterpart on Friday, as the release of downbeat Canadian data dented demand for the local currency, while hopes for an upcoming U.S. tax overhaul boosted the greenback.
USD/CAD was up 0.82% at 1.2587 by 09:30 a.m. ET (13:30 GMT).
Statistics Canada reported on Friday that the consumer price index increased 0.2% in September, missing forecasts for a 0.3% gain. Year-on-year, consumer prices advanced 1.6% last month, in line with expectations.
A separate report showed that Canadian retail sales decreased by 0.3% last month, compared to forecasts for a 0.5% gain.
Core retail sales, which exclude automobiles, slumped 0.7% in September, confounding expectations for an increase of 0.3%.
The greenback remained supported after the U.S. Senate late Thursday approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue tax-cut plans without Democratic support.
The Republican-controlled Senate voted for the budget measure by 51 to 49, which would add up to $1.5 trillion to the federal deficit over the next ten years in order to pay for proposed tax cuts.
Meanwhile, speculation over who will replace Janet Yellen as head of the Fed persisted.
Reports that U.S. President Donald Trump was leaning toward Fed Governor Jerome Powell, who is perceived as a less hawkish candidate, had temporarily weighed on the dollar.
Trump concluded interviews on Thursday with the five candidates, including Janet Yellen, he is considering to chair the Fed. He could announce a decision as early as next week.
The loonie was also lower against the euro, with EUR/CAD gaining 0.34% to 1.4847.