USD/CAD plummets to weekly lows, around mid-1.3300s on upbeat Canadian GDP

   •  Canadian economic growth rate betters expectations and stands at 0.3% m/m.
   •  Surging oil prices further underpin Loonie and exert some additional pressure.
   •  Disappointing US economic data fails to lend any support or stall the downfall.

The bid tone surrounding the Canadian Dollar picked up the pace in the last hour, with the USD/CAD pair tumbling to fresh weekly lows, around mid-1.3300s.

The pair extended its retracement slide from three-week lows and lost some additional ground during the early North-American session in reaction to a positive surprise from the Canadian monthly GDP print, coming in to show a growth of 0.3% m/m as compared to a flat reading expected.

This against the backdrop of the ongoing bullish run in crude oil prices, amid the prevalent risk-on mood, provided a strong lift to the commodity-linked currency - Loonie and prompted some aggressive selling, taking along some short-term trading stops being placed near the 1.3400 handle.

Meanwhile, the US Dollar failed to preserve its early modest gains to near three-week lows and drifted back into the negative territory after yet another disappointing from the US economic data - personal income/spending data and softer core PCE price index for the month of February.

It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current pull-back marks the end of the recent positive momentum as market participants now look forward to other US  data releases - Chicago PMI and Revised UoM Consumer Sentiment, for some immediate respite. 

Technical levels to watch