USD/CAD meets with a fresh supply on Friday amid dovish Fed-inspired USD selling bias.
An uptick in oil prices underpins the Loonie and further contributes to the tone offered.
Traders now look to Canadian Retail Sales data and Powell’s speech for a fresh impetus.
The USD/CAD pair struggles to capitalize on the previous day's recovery from the 1.3570 area or the lowest level since April 10 and attracts fresh sellers during the Asian session on Friday. Spot prices slide back below the 1.3600 mark in the last hour and seem vulnerable to prolonging a well-established downtrend witnessed over the past three weeks or so.
Thursday's US Dollar (USD) recovery move from the YTD low runs out of steam rather quickly amid growing acceptance that the Federal Reserve (Fed) will begin its monetary policy easing cycle soon. The bets were reaffirmed by the annual benchmark review of employment data released on Wednesday, which indicated that the US job growth over the past year to March was significantly weaker than initially estimated. This, in turn, resurfaced fears about a potential recession in the world's largest economy and fueled speculations about the possibility of a larger-than-normal, 50 basis points interest rate cut by the Fed in September. The dovish outlook puts some pressure on the US Treasury bond yields and the USD, which, in turn, is seen as a key factor dragging the USD/CAD pair lower.
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