The USD/CAD pair is facing downward pressure for the fifth consecutive day, hovering around the 1.3725 mark in early European trading. This decline is influenced by several factors affecting the market.
One of the primary drivers behind the weakness in the USD/CAD pair is the rise in oil prices, which is boosting the Canadian Dollar (CAD). Additionally, the US Dollar (USD) is also experiencing a slight decline, further weighing on the pair.
Looking ahead, traders are awaiting the release of the Canadian jobs data, which could provide more clarity on the direction of the USD/CAD pair. This economic indicator will have a significant impact on the CAD and could offer trading opportunities in the short term.
Furthermore, the upcoming US consumer inflation figures will play a crucial role in shaping the Federal Reserve’s future policy decisions, which in turn will impact the demand for the USD.
Analysis:
The USD/CAD pair is currently experiencing a downward trend due to rising oil prices and a weakening USD. Traders are advised to monitor the upcoming Canadian jobs data and US consumer inflation figures for potential trading opportunities.