The U.S. dollar firmed against its major counterparts in the European session on Friday, as market participants await the personal consumption expenditure price index, the Fed's preferred gauge of inflation, due out later today.

Economists expect the core PCE price index to rise 0.3 percent month on month and 4.5 percent year on year in March.

Overnight data showed that the quarterly inflation reading within the GDP data rose more than expected in the first quarter.

The core PCE price index climbed 4.9 percent in the first quarter after rising 4.4 percent in the fourth quarter. Economists had expected a 4.7 percent increase.

The Fed meeting is due next week and traders are expecting an 85.7 percent chance of a 25-basis-point rate hike.

The greenback climbed to 0.8975 against the franc and 1.2446 against the pound, from an early low of 0.8927 and a 2-day low of 1.2503, respectively. The greenback may find resistance around 0.91 against the franc and 1.21 against the pound.

The greenback appreciated to a 2-day high of 1.0976 against the euro and a 1-1/2-month high of 135.86 against the yen, off its early lows of 1.1039 and 133.36, respectively. The currency is seen finding resistance around 1.06 against the euro and 138.00 against the yen.

The greenback touched 1.3667 against the loonie, its highest level since March 28. The greenback is likely to face resistance near the 1.38 level.

The greenback was higher against the kiwi, at 0.6123. On the upside, 0.59 is possibly seen as its next resistance level.

The greenback firmed to a 1-1/2-month high of 0.6578 against the aussie, reversing from an early 3-day low of 0.6642. Next immediate resistance for the currency is seen around the 0.64 level.

Looking ahead, German preliminary inflation data for April, Canada GDP data for February, U.S. PCE price index for March, U.S. Chicago PMI for April, U.S. University of Michigan final consumer sentiment index for April and U.S. Baker Hughes oil rig count data are due in the New York session.

US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Sep 2023 to Oct 2023 Click Here for more US Dollar vs CAD Charts.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Oct 2022 to Oct 2023 Click Here for more US Dollar vs CAD Charts.