Overall currency markets are confronted by a crucial yet extremely cautious week ahead. Price ranges this week are running at the widest points in many months and adds to the potential of big moves.
USD/CAD gained strong upside momentum and is trying to settle above the resistance at 1.2700.
The Canadian dollar was trading 0.9% lower at 1.2710 to the greenback, or 78.68 U.S. cents, its biggest decline since last October. On Thursday, the loonie touched its strongest intraday level since February 2018 at 1.2464. "The loonie is losing ground along with other risk assets as market volatility increased on a small tantrum over the rising U.S. yields," said Amo Sahota, director at Klarity FX in San Francisco.