Greenback Outperforms The Loonie For The First Time This week
The greenback is recovering from recent losses and has outperformed the Loonie for the first time in days.
USD/CAD Pair Finally In The Green Zone
The USD/CAD pair closed the previous three trading days in the negative territory. However, the greenback has turned things around and is now rallying again. For the first time in days, the US Dollar is outperforming its Canadian counterpart and could possibly surge higher in the coming hours.
The USD/CAD pair started Friday as it had ended Thursday and reached its lowest level since early July at 1.2336. However, the pair went into a consolidation phase as the US Dollar began to recover from its slump. At the time of writing, the pair is up by 0.05% and trading at 1.2357.
The rally came as the United States Treasury yield began to rebound. The 10-year Treasury yield for the United States had been on a steady decline for the past few days, leading the greenback to underperform against its peers. However, with the rally, comes a stronger US Dollar. The stock futures in the US are also trading higher today. These factors helped boost the greenback’s performance against the Loonie.
The Loonie Is Still Looking To Extend The Lead
While the greenback is looking to recover, the Loonie might not be a pushover. The USD/CAD could drop lower over the coming hours as the Canadian dollar gains strength from the rising oil prices.
For the first time in years, the crude oil price has reached $85 per barrel. With the surge in crude oil price, the commodity-dependent Loonie could rally higher, leading to a decline in the USD/CAD trading price.
Both the Brent and the WTI are expected to rise higher in the coming days, which could further boost the Loonie’s performance against its North American rival.