Investing.com – The U.S. dollar moved higher against its Canadian counterpart on Friday, despite the release of tepid U.S. data, as a disappointing report on Canadian economic growth dented demand for the local currency.
USD/CAD was up 0.35% at 1.2471 by 09:30 a.m. ET (13:30 GMT), still close to the previous session’s three-week high of 1.2519.
The U.S. Commerce Department said on Friday that consumer spending increased as expected in August, while core inflation unexpectedly eased.
The greenback had strengthened broadly after U.S. President Donald Trump unveiled a plan on Wednesday calling for lower tax rates for businesses and individuals as part of a comprehensive overhaul of the U.S. tax code.
However, the proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
In Canada, official data on Friday showed that the economy stagnated in July, disappointing expectations for a growth rate of 0.1%.
On a more positive note, another report showed that Canada’s raw materials price index increased by 0.1% last month, beating expectations for an uptick of 0.3%.
The loonie was lower against the euro, with EUR/CAD advancing 0.66% to trade at 1.4744.
In the euro zone, data on Friday showed that consumer price inflation remained stable in September, missing forecasts for a slight increase.