- USD/CAD extends gains ahead of Canada’s Retail Sales release.
- The recovery in Crude oil prices could support the Canadian Dollar.
- US S&P Global PMI data is expecting a slight decline in November.
USD/CAD rebounds from the weekly lows hit on Thursday, extending gains for the second consecutive day. The USD/CAD pair trades higher near 1.3710 during the Asian session ahead of Canada’s Retail Sales release on Friday.
The Canadian Dollar (CAD) witnessed downward pressure due to the decline in Crude oil prices in the previous session, which could be attributed to the unexpected delay in an upcoming OPEC+ meeting.
However, Western Texas Intermediate (WTI) price recovers the recent losses, trading higher around $76.50 per barrel, by the press time and bringing minor support for the Loonie Dollar (CAD). This delay has introduced unpredictability regarding the future actions and decisions of the OPEC+ alliance, contributing to market uncertainty.
Bank of Canada (BoC) Governor Tiff Macklem's recent speech highlighted that policymakers "might" have taken sufficient measures to control inflation and balance the economy. On the flip side, the rising likelihood of no additional interest rate hikes by the Federal Reserve (Fed) fosters a risk-on sentiment, potentially weakening the USD/CAD pair.
The US Dollar Index (DXY) recovers recent losses, buoyed by the improvement in US Treasury yields, and trades higher around 103.80. The US 10-year and 2-year bond yields have surged to 4.46% and 4.94%, respectively. Looking ahead on the economic calendar, Friday's release of the US S&P Global PMI data is anticipated, with a slight expected decline in November. Investors will be closely watching these figures for insights into the performance of key sectors in the US economy.
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