- USD / CAD continues to push lower ahead of the US session.
- US dollar index falls below 90.50, focus shifts to retail sales data.
- WTI gains more than 1% after Thursday’s sharp decline.
After closing the previous two days in positive territory, the pair USD / CAD it lost its traction on Friday and was last seen trading at 1.2120.
The USD remains on the defensive
On Wednesday, the broad-based USD strength provided a boost to the pair and strong selling pressure surrounding crude oil allowed it to continue rising on Thursday. At the moment, a barrel of West Texas Intermediate (WTI) is up 1.15% on the day at $ 64.50, helping the commodity-sensitive Canadian dollar retain its strength.
Meanwhile, Bank of Canada Governor Tiff Macklem said Thursday that if the loonie were to move much higher, it could have a material impact on the Bank of Canada’s outlook and monetary policy setup. These comments put additional weight on the CAD’s shoulders during US trading hours.
On the other hand, the risk-positive market environment is hurting the safe-haven dollar ahead of the weekend. The US Dollar Index is currently losing 0.3% to 90.45.
Later in the session, US MU Retail Sales, Industrial Production and Consumer Sentiment Index will be considered for further momentum. The Canadian economic calendar will include March wholesale and manufacturing sales figures.
USD / CAD perspective
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