- USD/CAD gained traction ahead of American session and rose above 1.3200.
- Falling crude oil prices make it tough for CAD to find demand.
- Retail Sales data from Canada and US PMI data will be watched closely on Friday.
The USD/CAD pair spent the first half of the day fluctuating in a tight range below 1.3200 on Friday but started to push higher ahead of key data releases from Canada and the US. As of writing, the pair was up 0.23% on a daily basis at 1.3212.
DXY advances to fresh weekly highs above 93.20
The modest selling pressure surrounding crude oil seems to be making it difficult for the commodity-related loonie to stay resilient against its peers. Ahead of Baker Hughes Energy Services’ weekly US Oil Rig Count data, the barrel of West Texas Intermediate is down 1.25% on the day at $42.20.
In the early American session, Statistics Canada will release Retail Sales data for June. The advanced estimate showed that sales are expected to increase by 24.5% on a monthly basis.
On the other hand, the cautious market mood is helping the USD find demand wit the US Dollar Index (DXY) rising more than 0.5% on the day to a weekly high of 93.27. Later in the session, the IHS Markit will release the preliminary Manufacturing and Services PMI data for the US. Existing Home Sales data will be featured in the US economic docket as well. Meanwhile, the 10-year US Treasury bond yield is down 2.5% on the day, suggesting that the DXY could have a difficult time extending its rebound unless it’s supported by a recovery in yields.
Technical levels to watch for
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