USD/CAD struggles below 1.3100 handle, fresh multi-month lows
- The USD remains on the defensive ahead of the crucial Trump-Xi meeting at G20 summit.
- A modest pullback in Crude Oil undermines Loonie and might help limit the downside.
- Traders now eye Canadian GDP report/US economic data some short-term impetus.
The greenback remained on the defensive against its Canadian counterpart, with the USD/CAD pair slipping further below the 1.3100 handle to hit near five-month lows on Friday.
The pair extended its recent bearish trajectory from levels beyond the 1.3400 round figure mark and remained under some selling pressure for the fifth consecutive session on Friday, also marking its eighth day of a downtick in the previous nine.
Despite Thursday's mostly in line final US Q1 GDP report, the US Dollar failed to attract any buying interest and failed to lend any support to the major as investors remained on the sidelines ahead of the US President Donald Trump's trade-related meeting with Chinese President Xi Jinping.
Even a modest pullback in Crude Oil prices, which tend to undermine demand for the commodity-linked currency - Loonie, failed to provide any meaningful impetus, albeit seemed to be the only factor that might help limit further losses, at least for the time being.
Moving ahead, Friday economic docket - highlighting the monthly Canadian GDP report, along with the releases of Core PCE price index, personal income and spending data for May, Chicago PMI and revised UoM Consumer Sentiment index from the US will now be looked upon for some fresh impetus.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
