USD/CAD consolidates Thursday’s losses, fluctuates in tight range below 1.3150

• Crude oil extends recovery on Friday, WTI trades above $54.
• US Dollar Index moves sideways above the 97.50 mark.  
• FOMC members George, Kaplan, and Clarida are scheduled to speak later in the day.

The USD/CAD pair lost nearly 70 pips on Thursday amid the broad-based selling pressure surrounding the Greenback and the positive impact of recovering crude oil prices on the commodity-related Loonie. After posting its lowest daily close since late July at 1.3137, the pair had gone into a consolidation phase on Friday and is moving in a very tight channel. As of writing, the pair was posting small gains at 1.3140.

USD remains under pressure

Disappointing macroeconomic data releases from the United States (US) on Thursday, which showed a large contraction both in manufacturing and industrial production, forced the US Dollar Index to slump to its lowest level in seven weeks at 97.50. In the absence of fundamental drivers that could help the USD find demand, the pair is struggling to gain traction.

On the other hand, after adding more than 2% on Thursday, the barrel of West Texas Intermediate (WTI) continued to edge higher ahead of the weekly Baker Hughes rig count data. At the moment, the WTI is up 0.55% on the day at $54.40.

Later in the session, Kansas City Fed President Esther George, Dallas Fed President Robert Kaplan, and Federal Reserve Vice-Chair Richard Clarida will be delivering speeches.

Technical levels to watch for