The USDCAD pair is currently trying to settle below the support at 1.2650 while the US dollar is losing ground against most currencies during the early Friday morning in Asia. That is a break for the Loonie pair as it was declining for three days and after posting the heaviest daily fall since late August.
The positive response pulled the US Dollar Index the most since August 27, adding more losses than the post-Fed upside to refresh the monthly top. Additionally pressing on the US Dollar Index, the positive mood also benefited the US equities while the US 10-year Treasury yields soared the most in 10 weeks, finally supporting the Fed’s hints of tapering and rate hikes.
On the scheduled economic data, the initial readings of the US Markit PMIs for September softened than expected but Canadian Retail Sales for July improved versus -1.2% forecast to -0.6% MoM, versus +4.2% prior readouts.
Today, even though there’s a light schedule and a lack of big releases it might contest the USDCAD upside as the Loonie bears may keep the lead among risk-on mood and firmer prices of Canada’s biggest export, crude oil. The US New Home Sales for August are expected 0.7M vs 0.708M previously, may suggest new hints while risk compounds like a global push towards vaccinations and headlines from China taking priority.
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