- USD / CAD extends the rally to new multi-month highs on Friday.
- The US Dollar Index continues to rise after surpassing 92.00.
- The CAD is struggling to capitalize on the recovery in crude prices.
The pair USD / CAD It broke above 1.2400 on Friday and reached its strongest level since April 26 at 1.2453. At time of writing, the pair was up 0.7% on the day at 1.2445. On a weekly basis, the pair is up nearly 300 pips and is still on track to post its biggest weekly gain of the year.
Bullard’s comments boost the USD
The constant strength of the USD remains the main theme of the market before the weekend. In the absence of significant fundamental drivers and the release of high-level macroeconomic data, the US Dollar Index maintained its bullish momentum on Friday. In addition, the sharp decline seen in the main Wall Street indices allowed the USD to gain additional strength. Currently, the DXY is at its strongest level in more than two months at 92.35, increasing 0.5% on the day.
Hours earlier, St. Louis Fed Chairman James Bullard told CNBC that the June Fed meeting represented a “somewhat aggressive” move. Bullard further noted that inflation was stronger than expected and said FOMC Chairman Jerome Powell officially opened discussions on the fine-tuning at the last meeting.
Meanwhile, a barrel of West Texas Intermediate (WTI) rose more than 1% to $ 71.85 on Friday, but rising crude prices do not appear to help the loonie to limit its losses before the weekend.
Technical levels
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