USD/CAD hangs closer to 2-week lows, just above mid-1.2400s
|The USD/CAD pair came under some renewed selling pressure on Friday and extended previous session's rejection slide from just ahead of the key 1.2500 psychological mark.
Currently trading around 1.2455-60 area, testing session lows, the pair has now eroded majority of Thursday's tepid recovery gains from near two-week lows. The pair on Thursday bounced to an intraday high level of 1.2490 following upbeat US economic data and a slump in crude oil prices.
Oil prices suffered from Thursday's report by the International Energy Agency that forecasted lower demand for Organization of the Petroleum Exporting Countries (OPEC) crude, which eventually weighed on the commodity-linked currency - Loonie and helped the pair to rebound from lows.
• IEA Oil Market Report: global oil demand growth unchanged at 1.6 mbpd in 2017
With oil prices regaining fresh bullish traction, a mildly softer tone around the US Dollar was seen exerting pressure on the major through early European session on Friday.
Today's economic docket features the key US inflation figures and monthly retail sales, which along with Fedspeaks would help determine the next leg of directional move for the major.
Technical levels to watch
A follow through selling pressure, leading to a subsequent break below 1.2430 level, is likely to accelerate the slide towards the 1.2400 handle before the pair eventually drops to 1.2365 horizontal support.
On the upside, the 1.25 handle remains immediate strong hurdle, which if conquered might trigger a short-covering rally towards 1.2565 level en-route the 1.2600 handle.
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