USD/CAD extends daily slide to 1.2130 area on USD weakness, rising oil prices
|- USD/CAD continues to push lower ahead of the American session.
- US Dollar Index drops below 90.50, focus shifts to Retail Sales data.
- WTI gains more than 1% following Thursday's sharp decline.
After closing the previous two days in the positive territory, the USD/CAD pair lost its traction on Friday and was last seen losing 0.23% on a daily basis at 1.2132.
USD remains on the back foot
On Wednesday, the broad-based USD strength provided a boost to the pair and the heavy selling pressure surrounding crude oil allowed it to continue to push higher on Thursday. At the moment, the barrel of West Texas Intermediate (WTI) is rising 1.15% on the day at $64.50, helping the commodity-sensitive loonie preserve its strength.
Meanwhile, Bank of Canada Governor Tiff Macklem said on Thursday if the Canadian dollar were to move a lot higher, it could have a material impact on the BoC's outlook and monetary policy settings. These comments put additional weight on the CAD's shoulders during the American trading hours.
On the other hand, the risk-positive market environment is hurting the safe-haven greenback ahead of the weekend. The US Dollar Index is currently losing 0.3% at 90.45.
Later in the session, Retail Sales, Industrial Production and UoM Consumer Sentiment Index from the US will be looked upon for fresh impetus. The Canadian economic docket will feature Manufacturing Sales and Wholesale Sales figures for March.
USD/CAD outlook
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.