The USD/CAD maintains profits about a month above 0.3740

• The US dollar was appreciated more than 1% against the Loonie last week, driven by risk aversion.
• Concerns about an escalation of the conflict in the Middle East have compensated the positive impact of the highest prices of oil in the CAD.
• The USD/CAD continues in a bassist trend, 6.5% below the February maximum.

The US dollar is practically flat against its Canadian counterpart on Monday, consolidating profits after an impulsive recovery from the minimum of the year to date in 1,3538 last week.

The dollar showed more than 1% in the previous three days of negotiation, with investors hurrying towards safe assets as risk aversion intensified while the US prepared for the attack on Iran of this weekend.

The feeling of risk aversion and the hard line comments of the president of the FED, Jerome Powell, after the monetary policy decision last week, compensated for the positive impact of crude oil rebound on the Canadian dollar.

The weak Canadian data added pressure to CAD last week

In the macroeconomic field, Canadian retail sales figures failed to increase enthusiasm on Friday, with a shorter increase than expected in May. Excluding cars, the sales of all other products contracted in the face of expectations for the second consecutive month.

Beyond that, the prices of industrial products contracted even more in May, in the face of expectations of flat performance. In general, figures that point to weak economic growth in the second quarter, adding pressure to the BOCs to further reduce interest rates and weighing on CAD.

However, the longest USD/CAD trend remains bassist. The dollar has depreciated around 6.5% since the maximum of February, affected by the weakest economic data of the US and the negative impact of Trump’s commercial policy erratic.