USD/CAD stays in the positive territory above 1.2100 after US data
- USD/CAD pair clings to modest daily gains above 1.2100.
- US Dollar Index edges higher toward 90.50 on Friday.
- Core PCE inflation in US rose more than expected in April.
The USD/CAD pair continued to push higher in the early American session and reached a daily top of 1.2120 before going into a consolidation phase. As of writing, the pair was up 0.34% on the day at 1.2105.
USD looks to end the week on a firm footing
The data published by the US Bureau of Economic Analysis revealed on Friday that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, rose to 3.1% on a yearly basis in April from 1.9%. This reading came in higher than the market expectation of 2.9% and helped the USD preserve its strength against its rivals. Currently, the US Dollar Index is up 0.42% on a daily basis at 90.38.
Other data from the US showed that Personal Spending in April increased by 0.5% as expected and Personal Income declined by 13.1%.
Later in the session, the University of Michigan will release the final revision to its Consumer Sentiment Index for May.
Meanwhile, the barrel of West Texas Intermediate (WTI) is posting modest daily gains above $67, helping the commodity-related CAD limit its losses for the time being.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
