USD/CAD surges through 1.3400 mark, near 2-week tops on weaker Canadian retail sales

   •  Dismal Canadian retail sales largely offset hotter than expected headline CPI print.
   •  A sharp pull-back in crude oil prices undermined Loonie and remained supportive.
   •  Risk-on mood benefits USD’s safe-haven status and paves way for additional gains.

The USD/CAD pair continued gaining positive traction through the early North-American session and spiked to near two-week tops, beyond the 1.3400 handle after mixed Canadian macro data.

The pair built on this week's goodish rebound from mid-1.3200s, with a combination of negative forces further weighing on the Canadian Dollar and driving the pair higher for the second consecutive session.

A sharp pull-back in crude oil prices was seen weighing on the commodity-linked currency - Loonie, which lost some additional ground following today's disappointing release of Canadian monthly retail sales data.

The positive momentum was further supported by a strong pickup in the US Dollar demand, albeit hotter than expected Canadian consumer inflation figures seemed to keep a lid on any further strong up-move.

Meanwhile, the prevalent risk-off mood, triggered by renewed concerns over the health of the global economy, might continue to benefit the greenback's relative safe-haven status and provide an additional boost to the major.

Hence, a follow-through up-move, towards retesting monthly swing highs, around the 1.3465-70 region, now looks a distinct possibility amid absent relevant market moving economic releases from the US.

Technical levels to watch