USD/CAD loses ground around the mid-1.3700s, US housing data looms

• USD/CAD attracts some sellers around the mid-1.3700s on Friday.
• US weekly Initial Claims rose by 231,000, the highest level in nearly three months.
• House sales in Canada declined by the most in 16 months in October.
• Traders will focus on the US housing data and the Canadian Industrial Product Price Index, the Raw Materials Price Index.

The USD/CAD pair loses momentum during the Asian session on Friday. The pair bounces off 1.3685 low to 1.3777. At press time, the pair is losing 0.1% on the day to trade at 1.3749.

On Wednesday, the US Initial Claims for the week ending November 11 rose by 231,000, the highest level in nearly three months. Additionally, the Continuing Jobless Claims climb to 1.865M versus 1.883M prior. The markets anticipate the Federal Reserve (Fed) is done with the tightening cycle and expect a rate cut in the middle of 2024, which might weigh on the Greenback and cap the upside of the USD/CAD pair.

On the Loonie front, The Canadian Real Estate Association (CREA) revealed on Wednesday that house sales in Canada declined by the most in 16 months in October, as rising borrowing rates kept purchasers on the sidelines. Last week, the Bank of Canada (BoC) warned businesses and households to plan as the borrowing rates would be higher than in previous years. Additionally, a decline in oil prices might lift the commodity-linked Loonie, as the country is the leading oil exporter to the US.

Looking ahead, market participants will keep an eye on the US housing data on Friday, including Building Permit and Housing Start. The Housing Starts are estimated to drop from 1.358M to 1.35M while the Building Permits are forecast to decline from 1.471M to 1.45M. Also, the Canadian Industrial Product Price Index and the Raw Materials Price Index are due on Friday. These figures could give clear direction to the USD/CAD pair.