USD/CAD lower as Canadian data fails to boost Canadian dollar

On Friday, the USD/CAD pair is trading sideways, holding close to its levels from a week ago. The Canadian GDP increased by 0.3% in May, and core consumer inflation in the US is decreasing, according to US data. The price of the pair rose to weekly highs at 1.3248 but was unable to go further because of the sideways movement. Better than the headline statistic (0.3%), the Canadian economy expanded by 0.4%, but this recovery could only last a short time, according to National Bank of Canada economists.

The US Dollar suffered in June when the US Core Personal Consumption Expenditure Index dropped from 4.6% to 4.1%. Personal Spending increased by 0.5% over the anticipated 0.4%, while Personal Income increased by 0.3%, falling short of the market expectation of 0.5%.

The Employment Cost Index during the second quarter rose 1%, less than the 1.1% of market forecast. The US Dollar Index is falling 0.20% on Friday, erasing some of Thursday’s gains. The DXY is up, headed toward the second consecutive weekly gain.

The US and Canada will release employment reports next week. The USD/CAD is moving with a slight bullish bias but remains capped by the 1.3250 area. A break higher could lead to an acceleration, with the next resistance seen at 1.3290.