USD/CAD loses the momentum above the 1.3180 mark ahead of US Retail Sales

• USD/CAD loses the momentum near 1.3180 in the Asian session. 
• The US Dollar remains under pressure amid a less hawkish stance from the Federal Reserve (Fed).
• Crude oil reverses the pullback on Monday, boosts the commodity-linked Loonie.

The USD/CAD pair struggles to gain traction on Tuesday, backed by the prevailing US Dollar selling bias. The major pair currently trades around 1.3185, down 0.09% on the day. 

The Federal Reserve Bank of New York reported Monday that the NY Empire State Manufacturing Index dropped from -5.5 to 1.1, above expectations of -3.5. The US Dollar remains under pressure amid cautious optimism, and markets anticipate the Federal Reserve (Fed) to be less hawkish in tightening monetary policy following an expected interest rate hike in the July 26 meeting. This, in turn, leads to the recent decline in the US Treasury bond yields and keeps the USD bulls on the defensive. 

That being said, crude oil reverses its pullback on Monday and boosts the commodity-linked Loonie. Additionally, the broader risk sentiment might influence the USD demand and provide some impetus to the USD/CAD pair in the following sessions.

Looking ahead, market participants will keep an eye on the Canadian Consumer Price Index (CPI) MoM and the US Retail Sales later in the day. The Fed has entered its blackout period ahead of the July 25-26 meeting. Investors will digest the data and find a clear direction for the USD/CAD pair.