USD/CAD retreats modestly from multi-month highs, stays in green near 1.2900
- USD/CAD reached its highest level since January at 1.2949 on Friday.
- Crude oil prices trade in the negative territory.
- US Dollar Index consolidates weekly gains above 93.60.
The USD/CAD pair extended its rally and touched its strongest level since January at 1.2949 during the European trading hours. In the early American session, the pair retreated modestly and was last seen rising 0.48% on a daily basis at 1.2891.
DXY inches lower as US stocks look to open higher
Since the beginning of the week, the heavy selling pressure surrounding crude oil prices and the unabated USD strength allowed the pair to preserve its bullish momentum. Currently, the barrel of West Texas Intermediate is down nearly 7% on a weekly basis at $62.75, losing 1.75% on the day. On the other hand, the US Dollar Index is consolidating its gains near the 9-month high it set at 93.72 earlier in the day.
The data published by Statistics Canada showed on Friday that Retail Sales rose by 4.2% on a monthly basis in June. Although this reading came in slightly weaker than the market expectation for an increase of 4.4%, it failed to trigger a noticeable market reaction.
Meanwhile, US stock index futures turned positive on the day ahead of the opening bell, suggesting that the pair could edge lower ahead of the weekend with the improving market mood keeping the USD's gains limited.
Technical levels to watch for