- USD/CAD meets with some fresh supply on Friday and fell to over 1-month lows.
- Bullish oil prices underpinned the loonie while surging GBP weighed on the USD.
- Market participants look forward to the US retail sales data for a fresh impetus.
The USD/CAD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band just above one-month lows set earlier.
The pair failed to capitalize on the previous session's attempted recovery move and met with some fresh supply during the Asian session on Friday amid renewed selling bias surrounding the US dollar, primarily on the back of a strong upsurge in the British pound.
Weighed down by weaker USD, bullish oil prices
Apart from the USD weakness, the prevalent bullish sentiment surrounding crude oil prices underpinned the commodity-linked currency – loonie and further collaborated to the pair's early decline to mid-1.3100s – the lowest level since November 6.
Meanwhile, a fresh wave of the global risk-on trade, triggered by the latest optimism over the US-China “phase-one” deal, was further reinforced by some follow-through pickup in the US Treasury bond yields, which seemed to be the only factor lending some support to the USD.
The pair has managed to rebound around 15-20 pips from daily lows, albeit lacked any strong follow-through recovery. Market participants now look forward to the release of the US retail sales data for some meaningful impetus on the last trading day of the week.
Technical levels to watch
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