- USD / CAD is falling sharply early in the US session.
- The Canadian economy expanded at a stronger rate than expected in November.
- The US Dollar Index remains in negative territory below 90.50.
The pair USD / CAD it came under renewed downward pressure in the first US session on Friday and hit a fresh two-day low of 1.2749. At time of writing, the pair was down 0.57% on the day at 1.2757.
Focus shifts to Wall Street after US and Canadian data
Upbeat data from Canada appears to have given the loon a boost in the second half of the day. The monthly report published by Statistics Canada revealed that the real Gross Domestic Product (GDP) in November expanded 0.7% and exceeded the market expectation of 0.4%.
Additionally, a barrel of West Texas Intermediate is up nearly 2% to $ 53.05, allowing the commodity-related Canadian dollar to retain its strength.
On the other hand, the US Bureau of Economic Analysis reported that personal income in December increased 0.6%, but personal expenses decreased 0.2%. Later in the session, the University of Michigan Consumer Sentiment Index will be considered for fresh momentum.
Meanwhile, S&P 500 futures are down 0.4% ahead of the opening bell. If major Wall Street indices push lower after the opening bell, the dollar could start to gain traction against its rivals and limit the USD / CAD’s slide. At the moment, the US Dollar Index (DXY), which tracks the USD’s performance against a basket of six major currencies, is posting small daily losses at 90.40.
Technical levels
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