USD/CAD slumps to 1.2750 area on USD weakness, strong Canada GDP
- USD/CAD is falling sharply in the early American session.
- Canadian economy expanded at a stronger pace than expected in November.
- US Dollar Index stays in the negative territory below 90.50.
The USD/CAD pair came under renewed bearish pressure in the early American session on Friday and touched a fresh two-day low of 1.2749. As of writing, the pair was down 0.57% on a daily basis at 1.2757.
Focus shifts to Wall Street after US and Canada data
The upbeat data from Canada seems to have provided a boost to the loonie in the second half of the day. The monthly report released by Statistics Canada revealed that the real Gross Domestic Product (GDP) in November expanded by 0.7% and beat the market expectation of 0.4%.
Additionally, the barrel of West Texas Intermediate is up nearly 2% at $53.05, allowing the commodity-related loonie to preserve its strength.
On the other hand, the US Bureau of Economic Analysis reported that Personal Income in December increased by 0.6% but Personal Spending declined by 0.2%. Later in the session, the University of Michigan's Consumer Sentiment Index will be looked upon for fresh impetus.
Meanwhile, the S&P 500 Futures are down 0.4% ahead of the opening bell. If Wall Street's main indexes push lower after the opening bell, the greenback could start gathering strength against its rivals and limit USD/CAD's downside. At the moment, the US Dollar Index (DXY), which tracks the USD's performance against a basket of six major currencies, is posting small daily losses at 90.40.
Technical levels to watch for