USD/CAD retreats toward 1.2570 after a spike to 1.2606
|- Loonie recovers after a spike lower across the board.
- Price action remains limited on Friday, USD posts mixed results.
The USD/CAD jumped to 1.2606 during the American session, reaching the highest level in two days and then pulled back below 1.2600. Near the end of the week, it is hovering around 1.2575, slightly lower for the week.
Price action remains capped on Friday among major currency pairs, excluding USD/JPY. The USD/CAD is back in the recent familiar range between 1.2600 and 1.2540.
The US dollar is posting mixed results on Friday. Higher US yields are being offset by an improvement in risk appetite. The Dow Jones gains 075% and the Nasdaq by 0.80. Commodity-link currencies are being supported by the improvement in sentiment. The CAD is among the weakest, even after a better-than-expected Canadian retail sales report.
Despite the decline on Friday, the loonie is still among the top performer of the week. The USD/CAD is trading slightly below the level it had a week ago. “The loonie has been the best-performing currency in the G10 this week, possibly benefiting from a delayed reaction to last week’s Bank of Canada meeting (which saw another round of tapering) after some profit-taking appeared to have got in the way after the meeting”, explained analysts at ING.
Technical levels
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