- USD/CAD gains traction for the second straight day and is supported by a combination of factors.
- Sliding Crude Oil prices undermines the Loonie and acts as a tailwind amid a modest USD strength.
- Traders now look forward to the closely-watched US monthly jobs data (NFP) for a fresh impetus.
The USD/CAD pair gains positive traction for the second successive day on Friday and looks to build on the overnight recovery move from the 1.3280 region, or its lowest level since November 16. Spot prices stick to modest intraday gains, around the 1.3345-1.3350 area through the early European session and draw support from a combination of factors.
Crude Oil prices prolong the recent rejection slide from the 100-day SMA hurdle and drop to a nearly four-week low on the last day of the week. The uncertainty over a strong economic recovery in China weighs on the outlook for fuel demand and exerts pressure on the black liquid. This, in turn, is seen undermining the commodity-linked Loonie, which, along with a modest US Dollar strength, lends support to the USD/CAD pair.
The US Weekly Initial Jobless Claims released on Thursday pointed to the underlying strength in the labor market and raises the possibility of strong Nonfarm Payrolls (NFP) data. Furthermore, the upbeat US macro data forces investors to re-evaluate their expectations for future rate hikes by the Fed. Apart from this, the prevalent cautious mood lends support to the safe-haven buck and remains supportive of the USD/CAD pair's uptick.
The global flight to safety, meanwhile, exerts some downward pressure on the US Treasury bond yields, which, in turn, acts as a headwind for the USD. Traders also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the release of the closely-watched US monthly jobs report which may be a deciding factor for the trend, which is due later during the early North American session. This, along with Oil price dynamics should provide a fresh impetus to the USD/CAD pair.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.