- USD/CAD continues to push lower ahead of the weekend.
- US Dollar Index stays in the negative territory below 91.60.
- Investors await preliminary UoM Consumer Sentiment Index for April.
After spending the Asian trading hours around 1.2550, the USD/CAD pair met a modest bearish pressure and dropped to a daily low of 1.2493 in the early American session. As of writing, the pair was down 0.35% on a daily basis at 1.2498.
USD selloff remains intact
The broad-based USD weakness forces USD/CAD to remain on the back foot ahead of the weekend. Despite a technical correction witnessed in the 10-year US Treasury bond yield, the US Dollar Index stays in the red around 91.55 on Friday.
The only data from the US showed that Housing Starts and Building Permits increased by 19.4% and 2.7% on a monthly basis in March but these figures were largely ignored by market participants. Later in the session, the University of Michigan will release the preliminary Consumer Sentiment Index data for April.
On the other hand, the barrel of West Texas Intermediate is posting small daily gains around mid-$63, helping the commodity-related CAD preserve its strength.
In the meantime, Wall Street’s main indexes look to start the day higher with the S&P 500 Futures rising 0.25% ahead of the opening bell. If risk flows continue to dominate the financial markets in the remainder of the day, the greenback could have a difficult time finding demand.
Technical levels to watch for
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