The Canadian dollar stabilized on Friday, gaining slightly against the USD, but it lost ground over the week against most major currencies, including the US dollar. Thursday’s higher-than-expected US consumer price index (CPI) number, a key indicator of inflation, along with the US-led coalition attack on Houthi bases, have put investors in a defensive position and contributed to the already negative market sentiment.
The Canadian dollar managed to make modest gains against the US dollar on Friday after the US Producer Price Index came in lower than expected. This development offered some relief to investors after Thursday’s disappointing CPI figure.
Also aiding the Canadian dollar were rising oil prices, driven by escalating tensions in the Red Sea, a major conduit for oil shipments.
After peaking at just over 1.34 on Thursday, the USD/CAD pair has gradually drifted lower and is expected to trade in the mid to high 1.33 range as the week closes. Analysts of the Canadian dollar are looking forward to next week’s release of Canada’s Consumer Price Index (CPI) inflation number, as well as the Bank of Canada’s (BoC) latest Business Outlook Survey, for further insights into the direction of the currency pair.
The Canadian dollar is currently trading at 1.3404 CAD against the US Dollar.
