On Friday, the US dollar fell to a one and a half week low against the Canadian dollar, as the rebound in oil prices contributed to the growth of Canadian currency, although the demand for the US dollar is still widely supported.
In early US trade, USD/CAD pair reached 1.4140, its lowest level since January 11; the pair subsequently was fixed at 1.4142, down 0.89%.
The pair was likely to receive support at 1.4062, the low of January 11 and resistance at 1.4383, the high of January 13. On Friday, oil prices returned to the level of $ 31 per barrel, as cold climacteric conditions that swept the US and Europe supports the demand for raw materials.
On Wednesday, the first time since 2003, the price of oil fell below $ 27 per barrel along with the collapse of global financial markets, as investors worried that a considerable surplus of raw materials on the market comes at a time of slowing economic growth in the world, especially in China.
On Friday, Canada's statistical data showed that retail sales rose 1.7% in November, well above forecasts growth of 0.2%. The index of retail sales excluding autos rose 1.1% in November, although the expected increase of just 0.4%.
A separate report showed that the consumer price index in Canada fell 0.5% in December, below the projected 0.4% fall. In annual terms, the CPI increased by 1.6%.
Core CPI (excluding volatile price of energy and food) fell 0.4% last month, confounding expectations for a decline of 0.3%.
Meanwhile, the discrepancy between the rates of monetary policy of the European Central Bank and the Federal Reserve continues to support the dollar.
The US dollar strengthened positions after ECB President Mario Draghi stated that the regulator "would need to possibly re-think" its monetary policy in March.
The Canadian dollar rose sharply against the euro; EUR/CAD dropped by 2.59% to 1.5291.
Earlier on Friday, Markit research group said the composite Purchasing Managers' Index (production and services) dropped to 53.5 in January from 54.3 in December.