Investing.com

Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Friday, after Canadian inflation data came out line with expectations, while markets eyed the release of U.S. home sales data later in the trading session.



USD/CAD hit 1.0890 during European afternoon trade, the session low; the pair subsequently consolidated at 1.0891, easing 0.03%.



The pair was likely to find support at 1.0850, the low of May 19 and resistance at 1.0942, the high of May 21.



Official data showed that Canada''s core consumer price inflation rose 0.2% last month, in line with expectations, after a 0.3% increase in March.



Consumer price inflation in Canada, including the eight most volatile items, rose 0.3% in April, as markets had anticipated, after a 0.6% gain the previous month.



Meanwhile, the greenback remained supported after the National Association of Realtors on Thursday said existing home sales increased 1.3% in April to an annual rate of 4.65 million units, indicating that the housing market is regaining momentum.



A separate report showed that U.S. manufacturing activity expanded at a faster rate than expected this month.



The loonie was higher against the euro, with EUR/CAD shedding 0.20% to 1.4847.



In the euro zone, the Ifo Institute for Economic Research said its index for German business climate ticked down to a five-month low of 110.4 in May, from a reading of 111.2 the previous month. Analysts had expected the index to fall to 110.9.





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