The loonie, after reaching the high of 1.2685 in the US session, is consolidating gains in the early Asian trading hours on Friday. The pair is within in a trading channel with less than 10-pips movement.
The US Dollar Index, which is tracking the US Dollar against the six major currencies, trades above 93.00 little unchanged from the previous session with 0.26% gains.
The volatility in the US Dollar is further boosted after St. Louis Fed President James Bullard said that the Fed should have finished its tapering process by the end of March 22. Dallas Fed President Robert Kaplan said the strength in the US economy encourages the central bank to begin lowering its monthly asset purchases in October.
The profits were limited on mixed economic data, where US Initial Jobless Claims rose slightly to 353K and the US economy advanced an annualized 6.6% in Q2, below the market expectations of 6.7%. Conversely, the Canadian dollar managed to gain on steady crude oil prices.
Looking forward, traders are waiting for the slew of economic data: US Personal Income and Spending data, Goods Trade Balance, Personal Consumption Expenditure (PCE) Index and Fed Chair Jerome Powell speech to gauge the market sentiment.
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