- USD/CAD edges lower on Friday amid some renewed USD selling bias.
- Softer US retail sales did little to provide any respite to the USD bulls.
- Bullish oil prices underpinned the loonie and further exerted some pressure.
The USD/CAD pair has managed to recover a major part of the early slide to over one-month lows and might now be headed towards the top end of its daily trading range.
Having failed to capitalize on the previous session’s attempted bounce, the pair came under some renewed selling pressure on the last trading day of the week and was being weighed down by a combination of negative factors.
A fresh wave of selling pressure surrounding the US dollar, primarily on the back of a strong upsurge in the British pound, was seen as one of the key factors behind the pair’s negative move for the fourth session in the previous five.
It is worth recalling that the sterling rallied across the board on Friday after the incumbent Prime Minister Boris Johnson’s Conservative Party recorded a landslide victory in the most important UK general election.
The USD bearish pressure remained unabated following the disappointing US monthly retail sales figures for November, though were largely offset by an upward revision of the previous month’s readings.
Apart from the USD weakness, some follow-through pickup in crude oil prices provided an additional boost to the commodity-linked currency – loonie and further collaborated to the pair’s intraday slide.
Oil prices started losing traction in reaction the US President Donald Trump’s latest trade-related comments that the overnight WSJ report on China deal is completely wrong, which extended some support.
It will now be interesting to see if the pair is able to register any meaningful recovery or continues with its bearish consolidation phase amid nervousness ahead of the December 15 deadline for new US tariffs.
Technical levels to watch
Share
