USD/CAD trades with modest gains, comfortably above 1.3200 handle
- Weaker oil prices undermined Loonie and helped gain follow-through traction.
- The USD bulls remain on the defensive and capped any meaningful positive move.
- Investors now look forward to the US retail sales data for a short-term impetus.
The USD/CAD pair traded with a mild positive bias for the third consecutive session on Friday and is currently placed at weekly tops, around the 1.3225-30 region.
The pair built on this week's steady recovery move from six-week lows and remained supported by a weaker tone surrounding Crude Oil prices, which failed to lend any support rather undermined demand for the commodity-linked currency - Loonie.
Weaker oil prices remained supportive
Despite growing optimism over US-China trade talks and OPEC producers’ commitment to trim output, WTI futures edged lower on Friday amid lingering concerns about a slowdown in the global economy and slowing demand.
Meanwhile, the US Dollar bulls shrugged off a follow-through pickup in the US Treasury bond yields and remained on the defensive amid expectations of further easing by the Fed, which eventually seemed to be the only factor capping gains.
Hence, it will be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for any further appreciating move, possibly beyond mid-1.3200s.
Market participants now look forward to the US economic docket, highlighting the release of monthly retail sales data, which might influence the USD price dynamics and produce some short-term trading opportunities on the last day of the week.
Technical levels to watch