USD/CAD stays in the negative territory near 1.2650 in choppy session
- USD/CAD continues to fluctuate in its weekly range.
- WTI stays in a consolidation phase a little above $72.
- US Dollar Index stays calm following Thursday's upsurge.
The USD/CAD pair managed to post modest gains on Thursday but struggled to gather bullish momentum on Friday. As of writing, the pair was trading around the mid-point of its weekly range, losing 0.18% at 1.2657.
Eyes on US consumer confidence data
Despite the broad-based USD strength, rising crude oil prices helped the commodity-related loonie stay resilient against its American counterpart throughout the week. Currently, the barrel of West Texas Intermediate (WTI) is posting small daily losses at $72.20 but still gains more than 3% on a weekly basis.
On the other hand, the US Dollar Index, which rose 0.4% on the back of upbeat August Retail Sales data and rising US Treasury bond yields on Thursday, is consolidating its gains around 92.80, making it difficult for USD/CAD to find direction.
Later in the session, the University of Michigan's preliminary Consumer Sentiment Index will be the only data featured in the US economic docket. In the meantime, investors could opt out to stay on the sidelines ahead of the Canadian federal election that will take place on Monday, September 20.
Previewing the potential impact of this event on USD/CAD, "the election jitters could offer a rally to fade, reflecting scope for less fiscal support or paper-thin governing mandates," said TD Securities analysts.
USD/CAD: Election jitters could offer a rally to fade – TDS.
Technical levels to watch for