The USD remains on the defensive amid some renewed weakness in the US bond yields. A modest pickup in Oil prices underpinned Loonie and collaborated to the weaker tone.
9 August 2019, GKFX – The USDCAD pair traded with a mild negative bias through the early European session on Friday and is currently placed at the lower end of its daily trading range, around the 1.3220-15 region.
The pair added to the previous session’s heavy losses and remained under some selling pressure for the second consecutive session, retreating farther from multi-week tops set earlier this week on Wednesday.
USDCAD fundamental highlights
A subdued US Dollar demand – amid renewed weakness in the US Treasury bond yields – seemed to be one of the key factors exerting some pressure on the major. This coupled with a pickup in Crude Oil prices underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s softer tone on the last trading day of the week.
Oil prices inched higher on expectations of more OPEC production cuts, though concerns over prolonged US-China trade dispute kept a lid on gains and might help limit losses for the pair.
Moving ahead, Friday’s economic docket – highlighting the release of Canadian monthly employment details and the US Producer Price Index (PPI), will now play a key role in producing some meaningful trading impetus later during the early North-American session on the last trading day of the week.
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