- The dollar continues with the downward correction, although the negative tone is easing.
- The loonie clings to weekly gains against the greenback, recovering from lows in years.
- USD/CAD finds support at the 1.2780 area.
The USD/CAD is falling for the second day in a row and trades just below 1.2800. The pair fell to 1.2775, the lowest level since May 5th.
The weakness of the dollar is being the key factor behind the pullback of the USD/CAD, which last week had climbed to 1.3076, the highest since November 2020. The loonie is about to close the best week since the end of last year.
The decrease in torque comes from a general correction of the dollar in the market, both in the face of the fall and with the rise of the stock markets. On Friday the equity markets are recovering which favors the demand for riskier assets. In turn, oil prices also advanced, completing a 6% rise from Thursday’s low.
With no impact data ahead for Friday, the focus is expected to remain on risk flows and what happens with the Treasury bond market.
Technical levels
Source: Fx Street
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