USD/CAD dips below 1.4100 as bullish USD, weak Oil limit losses
The post USD/CAD dips below 1. 4100 as bullish USD, weak Oil limit losses appeared com. The USD/CAD pair drifts lower during the Asian session on Friday and now seems to have snapped a two-day winning streak to a nearly two-week high, levels just above the 1. 4100 mark, touched the previous day. Spot prices, however, bearish conviction and remain on track to register strong weekly gains amid the underlying bullish sentiment surrounding the US Dollar (USD). The USD Index (DXY), which tracks the Greenback against a basket of currencies, advanced to its highest level since late May on Thursday amid reduced bets for another interest rate cut by the US Federal Reserve (Fed). The expectations were reaffirmed by the delayed release of the US NFP report, which showed that the economy added 119, 000 new jobs in September compared to consensus estimates for 50, 000 and followed the 4, 000 decrease (revised from +22, 000) in August. This helps ease concerns about the softening labor market and offsets an uptick in the Unemployment Rate to 4. 4% from 4. 3%. The USD bulls, however, pause for a breather on the last day of the week amid growing concerns about the weakening economic momentum on the back of the largest-ever US government shutdown. The Canadian Dollar (USD), on the other hand, continues to be undermined by data released earlier this week, which pointed to signs of easing domestic inflation pressures. Furthermore, sustained selling around Crude Oil prices undermines the commodity-linked Loonie and limits the downside for the USD/CAD pair, warranting some caution for bearish traders and positioning for any meaningful decline. Traders now look forward to the release of monthly Canadian Retail Sales data and flash US PMIs for some impetus later during the North American session. Apart from this, speeches from a slew of influential FOMC members will be scrutinized for cues about the Fed’s rate-cut path, which, in turn, will drive.