- USD / CAD is fluctuating in a tight range after Thursday’s rally.
- Retail sales in the US increased 0.6% in June.
- Wholesale sales in Canada expanded at a softer pace than expected in May.
The pair USD / CAD it rose sharply and touched its highest level since April 21 at 1.2615 on Thursday before entering a consolidation phase on Friday. At time of writing, the pair is posting small daily losses at 1.2585. On a weekly basis, the pair remains on track to gain more than 100 pips.
The USD retains its strength ahead of the weekend
Falling crude oil prices and the general strength of the USD drove the USD / CAD rise in the second half of the week. After losing 2% on Thursday, the West Texas Intermediate (WTI) barrel is clinging to modest recovery gains near $ 72, helping the CAD remain resilient against its US counterpart.
On the other hand, the US Dollar Index is up 0.13% on the day at 92.68, which does not allow the USD / CAD to turn down. Data released by the US Census Bureau on Friday showed that retail sales in June increased 0.6% on a monthly basis. This reading was better than the market’s expectation of a 0.4% drop.
Meanwhile, Statistics Canada reported that wholesale sales in Canada expanded 0.5% in May, below analysts’ estimate of a 1.1% increase.
Later in the session, the preliminary Consumer Sentiment Index from the University of Michigan for July will be examined for further momentum.
Technical levels
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