nvesting.com - 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 loonie was higher against the euro, with EUR/CAD slipping 0.11% to 1.3895.
The euro came under presssure after official data on Friday 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.
The bloc's CPI rose at an annualized rate of 0.2% last month, unchanged from November.
Core CPI in the euro zone, which excludes food, energy, alcohol and tobacco, rose 0.4% in December, after a 0.1% downtick the previous month.
The data fuelled further concerns over persistently low levels of inflation in the euro area. The European Central Bank targets an inflation rate of close to, but just below 2%.
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