USD/CAD continues to move sideways below 1.2600 after US and Canada data
- USD/CAD fluctuates in a tight range following Thursday's upsurge.
- Retail Sales in US increased by 0.6% in June.
- Wholesale Sales in Canada expanded at a softer pace than expected in May.
The USD/CAD pair rose sharply and touched its highest level since April 21 at 1.2615 on Thursday before going into a consolidation phase on Friday. As of writing, the pair was posting small daily losses at 1.2585. On a weekly basis, the pair remains on track to gain more than 100 pips.
USD preserves its strength ahead of the weekend
Falling crude oil prices and the broad-based USD strength fueled USD/CAD's upside in the second half of the week. After losing 2% on Thursday, the barrel of West Texas Intermediate (WTI) is clinging to modest recovery gains near $72, helping the CAD stay resilient against its American counterpart.
On the other hand, the US Dollar Index is rising 0.13% on the day at 92.68, not allowing USD/CAD to push lower. The data published by the US Census Bureau showed on Friday that Retail Sales in June increased by 0.6% on a monthly basis. This reading came in better than the market expectation for a decline of 0.4%.
Meanwhile, Statistics Canada reported that Wholesale Sales in Canada expanded by 0.5% in May, falling short of analysts' estimate for an increase of 1.1%.
Later in the session, the University of Michigan's preliminary Consumer Sentiment Index for July will be looked upon for fresh impetus.
Technical levels to watch for