USD/CAD drops below 1.2650 ahead of US and Canada data

• USD/CAD remains on the back foot on Friday.
• Broad USD weakness allows bearish pressure to remain intact.
• WTI trades in the negative territory below $60.

The USD/CAD pair lost nearly 30 pips and closed below 1.2700 on Thursday. The unabated selling pressure surrounding the USD forces USD/CAD to remain on the back foot on Friday. As of writing, the pair was down 0.3% on a daily basis at 1.2636.

USD struggles to attract investors on Friday

The US Dollar Index (DXY) is falling for the second straight day on Friday as the relatively upbeat market mood is not allowing the greenback to outperform its rivals. The DXY is currently falling 0.37% at 90.26 and the S&P 500 Futures are up 0.3%.

Later in the day, the IHS Markit will release February's preliminary Manufacturing and Services PMI figures for the US, which are expected to show ongoing expansion in both sectors. Additionally, the National Association of Realtors will publish the January Existing Home Sales figures.

On the other hand, the barrel of West Texas Intermediate (WTI) is losing around 1.5% on the day at $59.30, helping USD/CAD limit its losses for the time being. The only data featured in the Canadian economic docket on Friday will be December Retail Sales. The market consensus points out to a 2.5% decline and a better-than-expected reading could help the CAD continue to gather strength ahead of the weekend.

Technical levels to watch for