USD/CAD steadies above 1.34, adds nearly 100 pips for the week

• Mixed data from Canada weighs on the CAD on Friday.
• Dismal market mood drags crude oil prices lower.
• US Dollar Index turns positive on the weekly chart.

The USD/CAD pair built on Thursday’s gains and advanced to its highest level since March 11 at 1.3427. With the trading action turning subdued in the last couple of hours, the pair started to move sideways in the upper half of its daily range and was last seen adding around 0.4% on the day at 1.3415. On a weekly basis, the pair is up nearly 100 pips.

Earlier today, the data published by Statistics Canada showed that  inflation, as measured by the consumer price index (CPI), rose 1.5% on a yearly basis in February to beat the market expectation of 1.4%. Other data revealed that  retail sales declined by 0.3% on a monthly basis in January to fall short of the analysts’ estimate for an increase of 0.4%.  

Meanwhile, the US T-bond yield curve inversion and disappointing economic data releases from Germany elevated fears of an economic slowdown and weighed on risk-sensitive crude oil prices to put additional weight on the commodity-related loonie’s shoulders. At the moment, the barrel of West Texas Intermediate is losing 1.45% on the day at $59.

On the other hand, with the greenback taking advantage of the risk-averse atmosphere and ignoring the weak Markit PMI data from the U.S., the US Dollar Index extended its rebound and turned positive for the week near 96.70 to support the pair’s daily rally.  

Technical levels to consider