- USD/CAD meets with some fresh supply and drops to two-week lows.
- Stronger oil prices underpinned the loonie and exerted some pressure.
- The USD remains on the defensive post-mixed US monthly retail sales.
The USD/CAD pair maintained its offered tone through the early North-American session and dropped to fresh two-week lows, around the 1.3235 region in the last hour.
The pair met with some fresh supply on Friday and reversed the previous session’s positive move amid a modest pickup in crude oil prices, which tend to underpin demand for the commodity linked currency – the loonie.
A subdued USD adds to the selling bias
The pair edged lower for the third session in the previous four and was further pressurized by a subdued US dollar price action, which remained on the defensive on the back of a fresh leg of a downfall in the US Treasury bond yields.
The intraday bearish pressure remained unabated following the release of mixed US monthly retail sales data. The headline and the core figures came in to show a modest growth of 0.3% but were largely offset by weaker Retail Sales Control Group.
Friday’s US economic docket also features the release of the Michigan Consumer Sentiment Index. This coupled with the Baker Hughes report on the number of oil and gas rigs might produce some short-term trading opportunities.
Technical levels to watch
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