USD/CAD drops to fresh daily lows near 1.3050 as oil continues to push higher
|- USD/CAD is edging lower ahead of American session.
- US Dollar Index turned negative on the day below 92.30.
- Market mood remains upbeat on latest headlines surrounding coronavirus vaccine.
The USD/CAD came under renewed bearish pressure ahead of the American session and touched a fresh daily low of 1.3045. As of writing, the pair was down 0.18% on the day at 1.3048.
USD remains on the back foot on Friday
Rising crude oil prices continued to provide a boost to the commodity-sensitive loonie on the last day of the week. Heightened optimism for an effective coronavirus vaccine revived hopes for a steady recovery in global energy demand and provided a boost to oil. As of writing, the barrel of West Texas Intermediate (WTI) was up 1.2% on a daily basis at $42.22.
Earlier in the session, Pfizer and BioNTech announced that they will be applying for authorization of the emergency use of their coronavirus vaccine with the US Food and Drug Administration (FDA) on Friday. This headline seems to have helped market sentiment improve with the S&P 500 Futures turning positive on the day near 3,580.
On the other hand, the greenback continues to have a difficult time finding demand as a safe haven and allowing USD/CAD to extend its slide. At the moment, the US Dollar Index is posting modest daily losses at 92.27.
Later in the day, Statistics Canada will release September Retail Sales data, which is expected to show an increase of 1% on a monthly basis. A disappointing reading could hurt the CAD and trigger a rebound in the USD/CAD and vice versa.
Technical levels to watch for
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