USD/CAD gained strong upside momentum and is trying to settle above the 20 EMA.
The Canadian dollar weakened against its U.S. counterpart on Friday, giving back much of this week's gains, as new pandemic curbs in China weighed on oil prices and data added to evidence of Canada's economy slowing in December. "The stalled move lower in the USD around the 1.26 level again leaves the CAD in a weak position on the face of it for the week ahead," FX strategists at Scotiabank, including Shaun Osborne, said in a note. Speculators have cut their bullish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed.
The direction of the March U.S. Dollar Index into the close will be determined by trader reaction to the 50% level at 90.340.