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
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
