Canadian Dollar Retreats as USD Resurges
The Canadian Dollar (CAD) declined further against the US Dollar (USD) on Friday as market participants adjusted their positions after this week's volatility. Investors are scooping up the safe-haven USD, reversing midweek gains that were fueled by Fed rate cut expectations.
Key Factors:
- USD Rebound: Renewed demand for the US Dollar drives the CAD lower.
- Fading Rate Cut Hopes: Investors are reassessing earlier optimism about potential Fed rate cuts.
- Canadian Retail Sales: A slight decline in January figures adds to the CAD's pressure.
- Upcoming GDP and PCE Data: Next week's major data releases could further influence currency movements.
Technical Outlook:
- USD/CAD Recovery: The pair has clawed back midweek losses and challenges the 1.3600-1.3620 supply zone.
- Key Levels: The 200-day SMA near 1.3488 offers potential support, while 1.3450 presents the last swing low for short sellers.