“¢ Dismal Canadian retail sales largely offset hotter than expected headline CPI print.
“¢ A sharp pull-back in crude oil prices undermined Loonie and remained supportive.
“¢ Risk-on mood benefits USD’s safe-haven status and paves way for additional gains.
The USD/CAD pair continued gaining positive traction through the early North-American session and spiked to near two-week tops, beyond the 1.3400 handle after mixed Canadian macro data.
The pair built on this week’s goodish rebound from mid-1.3200s, with a combination of negative forces further weighing on the Canadian Dollar and driving the pair higher for the second consecutive session.
A sharp pull-back in crude oil prices was seen weighing on the commodity-linked currency – Loonie, which lost some additional ground following today’s disappointing release of Canadian monthly retail sales data.
The positive momentum was further supported by a strong pickup in the US Dollar demand, albeit hotter than expected Canadian consumer inflation figures seemed to keep a lid on any further strong up-move.
Meanwhile, the prevalent risk-off mood, triggered by renewed concerns over the health of the global economy, might continue to benefit the greenback’s relative safe-haven status and provide an additional boost to the major.
Hence, a follow-through up-move, towards retesting monthly swing highs, around the 1.3465-70 region, now looks a distinct possibility amid absent relevant market moving economic releases from the US.
Technical levels to watch
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