Investing.com – The U.S. dollar rose to fresh six-month highs against its Canadian counterpart on Friday, after data showed that U.S. retail sales grew in August at the fastest pace in four months and as markets eyed an upcoming report on U.S. consumer sentiment.
USD/CAD hit 1.1076 during early U.S. trade, the pair’s highest since March; the pair subsequently consolidated at 1.1071, rising 0.32%.
The pair was likely to find support at 1.1031 and resistance at 1.1278.
Official data showed that U.S. retail sales rose 0.6% last month, in line with expectations. Retail sales for July were revised to a 0.3% gain from a previously estimated flat reading.
Core retail sales, which excludes automobiles, increased by 0.3% in August, in line with market expectations and following a 0.3% gain in July, whose figure was revised from a previously estimated 0.1% rise.
The positive data added to expectations for an early hike in U.S. interest rates after a study by the San Francisco Federal Reserve published on Monday indicated that central bank officials see rates rising sooner than markets expect.
The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting next week which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
The loonie was lower against the euro, with EUR/CAD gaining 0.38% to 1.4314.
In the euro zone, official data earlier showed that industrial production rose 1.0% in July, exceeding expectations for a 0.5% gain, after a 0.3% fall in June.
But sentiment on the single currency remained vulnerable after the European Central Bank unexpectedly cut rates to record lows across the euro zone last week and unveiled new easing measures in a bid to shore up the faltering recovery and boost inflation.
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