- The USD / CAD pair fluctuates in a tight range for the second day in a row.
- The US Dollar Index dips below 91.00 before US data.
- WTI continues to consolidate weekly losses, remains above $ 61.
After the sharp fall on Wednesday, the pair USD / CAD entered a consolidation phase and continues to struggle to make a decisive move in either direction before the weekend. At time of writing, the pair was virtually unchanged on the day at 1.2500.
The Bank of Canada (BoC) decided to reduce its weekly bond purchases and said current macroeconomic projections point to a possible rate hike in the second half of 2022. The aggressive forward orientation of the BoC allowed the CAD to gain strength against its rivals and weighed on the USD / CAD.
USD / CAD struggles to capitalize on USD sell-off
On Friday, the pair remains relatively calm despite widespread selling pressure surrounding the dollar, as the modest drop seen in crude oil prices appears to keep potential gains from the CAD limited. At the moment, a barrel of West Texas Intermediate (WTI) is down 0.4% on the day at $ 61.40.
Later in the session, IHS Markit will release preliminary April Manufacturing and Services PMI figures for the US Prior to this data, the US Dollar Index is shedding 0.35% to 91.95, which does not allow the USD / CAD rises further above 1.2500.
Meanwhile, the major Wall Street indices appear to be opening into positive territory, suggesting that the USD could remain on the defensive in the second half of the day. Despite the positive impact of the BoC’s political outlook on CAD, USD / CAD remains on track to end the week lateralized around 1.2500.
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.
