USD/CAD showed little reaction to the first set of data from the US and Canada on Friday and the pair stayed within a descending channel ahead of a more important consumer sentiment data from the US.

At 14:35 GMT, the pair was at 1.0093, down from its  previous close of 1.0104. It moved in a range of 1.0082 and 1.0113 so far in the day.

After hitting a 6-day high of 1.0139 on Wednesday, the pair was moving sideways but with lowering tops and steady bottoms mostly a little above 1.0080.

Data released at 13:30 GMT showed US producer prices rose higher than expected in November while its October trade deficit narrowed more than expected. Canada's international merchandise trade deficit also shrank to a lower-than-expected level in October. 

Reuters/Michigan consumer sentiment index for December is due at 14:55 GMT, which analysts expect to come in at 72.5, higher than 71.6 in November.

If the pair loses ground after data, first support will be 1.0059/39 region (S1), that is, between the 61.8 percent and 76.4 percent Fibonacci retracement from 1.0139 to 1.0010.  Below that, the pair has a strong support in a 10-pip region just above the parity level (S2).

On the higher side, 1.0140/70 region (R1) looks like an immediate target.

USD/CAD

USD/CAD showed little reaction to the first set of data from the US and Canada on Friday and the pair stayed within a descending channel ahead of a more important consumer sentiment data from the US.