USD/CAD hovers near fresh 5-year highs despite weak U.S. data
The U.S. dollar was hovering near fresh five-year highs against its Canadian counterpart on Friday, despite disappointing U.S. industrial production and inflation reports as markets awaited the release of U.S. consumer sentiment data later in the day. USD/CAD hit 1.2046 during early U.S. trade, the pair's highest since April 2009; the pair subsequently consolidated at 1.2020, climbing 0.54%. The pair was likely to find support at 1.1925, the low of January 14 and resistance at 1.2046. Official data showed that U.S. industrial production slipped 0.1% in December, confounding expectations for a 0.1% rise, after an increase of 1.3% in November. A separate report showed that U.S. consumer price inflation fell 0.4% last month, in line with expectations and after a 0.3% decline in November. Core CPI, which excludes food and energy, was flat in December, compared to expectations for a 0.1% rise, after a 0.1% uptick the previous month.
The U.S. dollar was hovering near fresh five-year highs against its Canadian counterpart on Friday, despite disappointing U.S. industrial production and inflation reports as markets awaited the release of U.S. consumer sentiment data later in the day. USD/CAD hit 1.2046 during early U.S. trade, the pair's highest since April 2009; the pair subsequently consolidated at 1.2020, climbing 0.54%. The pair was likely to find support at 1.1925, the low of January 14 and resistance at 1.2046. Official data showed that U.S. industrial production slipped 0.1% in December, confounding expectations for a 0.1% rise, after an increase of 1.3% in November. A separate report showed that U.S. consumer price inflation fell 0.4% last month, in line with expectations and after a 0.3% decline in November. Core CPI, which excludes food and energy, was flat in December, compared to expectations for a 0.1% rise, after a 0.1% uptick the previous month.
The euro dropped to fresh 11-year lows against the U.S. dollar on Friday, as downbeat euro zone inflation data fuelled further expectations that the European Central Bank could announce additional stimulus measures in its upcoming policy statement. EUR/USD hit 1.1538 during U.S. morning trade, the pair's lowest since October 2003; the pair subsequently consolidated at 1.1547, retreating 0.72%. The pair was likely to find support at 1.1531 and resistance at 1.1649, the session high. The euro was hit after official data earlier showed that consumer price inflation in the euro zone fell 0.1% in December, in line with market expectations, after a 0.2% decline in November.
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