- USD / CAD alternated between tepid gains and minor losses throughout the early North American session.
- A recovery in global risk sentiment undercut the safe-haven dollar and limited the rise.
- Weaker crude oil prices undercut the loonie and helped limit deeper losses for the principal.
The pair USD / CAD it lacked a firm directional bias and ranged from tepid gains / minor losses, around 1.3200 during the early American session.
A combination of divergent forces did not help the pair to take advantage of the good gains of the previous day, but instead led to moderate / in-range price action on the last day of the week. A slight improvement in global risk sentiment, as shown by a positive tone in equity markets, affected the safe haven status of the US dollar.
However, growing market concern that a sharp rise in new coronavirus cases could lead to further lockdown measures and hamper the global economic recovery helped limit any deeper USD declines. In addition to this, the upbeat US monthly retail sales figures on Friday provided some respite to the USD bulls and extended support to the USD / CAD pair.
Meanwhile, a further drop in crude oil prices undermined the commodity-linked currency – the Canadian dollar. The loonie was further pressured by disappointing August manufacturing sales data, which, in turn, further contributed to limiting the decline in the USD / CAD pair, at least for now.
Other economic data released on Friday showed that industrial production in the US unexpectedly fell 0.6% month-on-month in September compared to a 0.4% increase the previous month. However, the data did little to provide a significant boost and largely went unnoticed as attention remains focused on developments around the US fiscal stimulus measures.
Credits: Forex Street
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.
