- USD/CAD receives upward pressure on weaker Crude oil.
- WTI prices fall as investors anticipate an agreement on supply cuts into 2024.
- CAD gained ground on upbeat Canada’s retail Sales on Friday.
- US Dollar struggles despite improved US Treasury yields.
USD/CAD recovers the recent losses registered in the previous session. The USD/CAD pair trades higher near 1.3660 during the Asian session on Monday. The decline in Crude oil prices weighs on the Canadian Dollar (CAD). Western Texas Intermediate (WTI) price continues the losing streak that began on Wednesday, bidding lower around $75.00 per barrel, by the press time.
Crude oil prices are under pressure as investors await the Organization of the Petroleum Exporting Countries and their allies (OPEC+) meeting later this week, anticipating an agreement on supply cuts into 2024. The prices of Crude oil experienced a decline following the decision by OPEC+, to postpone a ministerial meeting to November 30.
However, the Loonie Dollar (CAD) gained bullish momentum in Friday's session, propelled by a better-than-expected Retail Sales report and a broader market recovery in risk sentiment. Canada’s Retail Sales (MoM) for September showed an improvement of 0.6% against the market expectation of a flat 0.0% and the previous reading of 0.1% decline. Retail Sales ex Autos remained consistent at a 0.2% increase as compared to the contraction of 0.2%.
The US Dollar Index (DXY) trades around 103.40, facing challenges in halting losses despite improved US Treasury yields. The US 10-year and 2-year bond yields currently stand at 4.50% and 4.97%, respectively, at the time of the press. The US yields rise on the market speculation of the Fed to consider easing monetary policy in 2024.
Investors will likely observe Canada’s Gross Domestic Product (GDP) and employment data, along with key indicators from the United States (US), which include GDP Annualized for Q3, and Core PCE - Price Index.
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
AUD/USD continues soft as markets digest employment data
The AUD/USD declined by 0.34% to 0.6470 in Thursday's session, extending its decline to a fresh three-month low of 0.6460. The US Dollar is easing after mixed data, while weak Australian employment data has reduced inflationary concerns, which might change the outlook of the Reserve Bank of Australia.
USD/JPY jumps above 156.50 after Japanese GDP, eyes on US Retail Sales data
The USD/JPY pair extends the rally to around 156.60, the highest level since July 23 during the early Asian session on Friday. The upward movement of the pair is bolstered by the firmer US Dollar broadly. Traders brace for the US October Retail Sales, which is due later on Friday.
Gold falls as Powell signals Fed's patience on lowering rates
Gold recovers some ground on Thursday yet remains trading below its opening price for the fifth consecutive day, undermined by the Greenback’s advance for its own fifth consecutive day. A slightly hot inflation report in the US and solid jobs data sponsored XAU/USD’s leg down toward the 100-day SMA.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the early Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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.