The Loonie lost strength on Friday despite the rise in crude oil price. Growth data and the expectations report from the Bank of Canada failed to boost the currency.
USD/CAD bottomed earlier 1.2945, the lowest level since September. Afterward, the bearish potential lost strength, possible amid some profit taking from short positions. The pair bounced moving toward the 1.3000 handle. It reached 1.2997 and currently trades at 1.2995. The 1.3000 area is offering resistance.
Today’s data showed that the Canadian economy expanded 0.2% in April, in line with expectations (3.3% y/y). Later, the Bank of Canada released the Business survey outlook that showed optimism about the future of the economy.
Another terrible week, even worst month
The pair is about to end the week with the biggest slide in a year. A weak US dollar, the recovery in crude oil prices and the hawkish change in tone of the Bank of Canada, triggered another slide in USD/CAD.
During June it lost more than 500 pips, the worst month since March 2016.
On Monday, Canadian markets won’t be open because of the celebration of Victoria Day and Wall Street on Tuesday for Independence day.