The Canadian Dollar strengthens against the USD, driven by rising oil prices, putting the pair on track for a second weekly decline.
USD/CAD slipped to 1.4022 on Friday, pressured by a rally in oil prices that bolstered the Canadian Dollar. The pair remains near a one-month low as the USD’s broader recovery struggles to offset CAD gains.
Earlier this week, the pair traded above 1.4100, but a surge in crude prices—Canada’s key export—has supported the loonie. Analysts note the correlation between oil and CAD strength, particularly in a risk-on environment.
Markets are monitoring the pair’s weekly close, with a second consecutive loss potentially signaling further CAD momentum.