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USD/CAD: overnight recovery interrupted ahead of 1.24 handle

1/26/2018, 1:47:29 PMTrading Strategies
USD/CAD: overnight recovery interrupted ahead of 1.24 handle

The USD/CAD pair came under some renewed selling pressure on Friday and eroded a major part of previous session's modest recovery move. 

Overnight remarks by the US President Donald Trump, saying that he wants a stronger US Dollar, helped the pair to rebound over 100-pips from an intraday low near the 1.2280 region, touched in the aftermath of upbeat Canadian core retail sales figures.

The recovery move, however, failed ahead of the 1.2400 handle during the Asian session on Friday and was being capped by some renewed USD weakness, despite positive tone surrounding the US Treasury bond yields.

Further downside, however, remained cushioned amid a follow-through retracement in crude oil prices, which tends to dent demand for the commodity-linked currency - Loonie.

Moreover, investors also seemed to refrain from placing aggressive bets and wait for today's important macro releases from the US and Canada for some fresh directional impetus. The US economic docket features the release of advance GDP growth figures and durable goods orders, while from Canada, the release of latest consumer inflation figures might now contribute towards determining the pair's near-term trajectory.