- USD / CAD remains on track to close for the second day in a row in positive territory.
- BoC Governor Macklem said a stronger CAD could affect policy making.
- The US Dollar Index clings to small daily gains at 90.80.
The pair USD / CAD it remained relatively quiet above 1.2100 for most of the day, but turned north early in the US session. The pair, which touched a new weekly high of 1.2202, was up 0.37% on the day to 1.2176 at press time.
Dovish comments from the BoC hurt the CAD
Bank of Canada Governor Tiff Macklem said Thursday that his projections and policy setting could be materially affected if the CAD continued to rise. “If the loon continues to rise, there could be more headwind for export projections, we are seeing this,” Macklem added and forced the loon to strengthen against its rivals.
Furthermore, the 3% decrease observed in the barrel of West Texas Intermediate (WTI) is putting additional weight on the shoulders of commodity-sensitive CAD.
On the other hand, after a modest decline, the US dollar index rebounded and remains in positive territory near 90.80. Hours earlier, data released by the US Bureau of Labor Statistics showed that the Producer Price Index (PPI) rose to 6.2% annually in April from 4.2%. Additionally, weekly Initial Unemployment Claims decreased to 473,000 and were better than market expectations of 490,000. However, the market reaction to these figures was largely subdued.
On Friday, data from manufacturing sales and wholesales will be included in the Canadian economic calendar. April US retail sales and industrial production figures will also be considered for further momentum.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
