The Loonie clipped a part of its intraday gains and was last seen trading around the 1.2700 mark, up nearly 0.20% heading into the North American session.
The pair attracted some buying on Thursday and built on the overnight bounce from the 1.2665 area, or the weekly low, though a combination of factors capped any meaningful upside. Intensifying the Russia-Ukraine conflict pushed crude oil prices higher and underpinned the commodity-linked USDCAD. This, along with the emergence of fresh US dollar selling, acted as a headwind for the USDCAD pair.
Russia’s states of a part pullback of troops from the Ukraine border earlier this week was countered by Western governments, saying that there were no signs of de-escalation on the ground. Separately from this, reports of shelling in eastern Ukraine boosted oil prices, though expectations for the return of Iranian oil in the markets kept a lid on any meaningful upside, at least for the time being. This, along with less hawkish FOMC minutes released on Wednesday, weighed on the safe-haven greenback.
Looking forward in the US, Philly Fed Manufacturing Index, Weekly Initial Jobless Claims and housing market data will be released. This, along with the US bond yields, will influence the USD and provide some impetus to the USDCAD pair. Furthermore, traders will further take clues from oil price dynamics to grab some meaningful opportunities around the Loonie.
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