- USD/CAD edges lower in the American trading hours.
- US Dollar Index stays in the negative territory after US data.
- Modest increase in crude oil prices provides a boost to CAD.
Following a consolidation phase above 1.2300 during the European trading hours, the USD/CAD pair lost its traction and dropped to a fresh daily low of 1.2270. As of writing, the pair was up 0.33% on the day at 1.2284.
DXY looks to snap four-week winning streak
The broad-based USD weakness ahead of the weekend seems to be causing the pair to extend its slide in the American session.
The data published by the US Bureau of Economic Analysis showed on Friday that the annual Core Personal Consumption Expenditures (PCE) Price Index rose to 3.4% in May from 3.1% in April. Although this figure came in line with the market expectation, the greenback struggled to attract investors. As of writing, the US Dollar Index (DXY) was down 0.16% on the day at 91.66. On a weekly basis, the DXY is losing 0.7%.
Meanwhile, the University of Michigan’s Consumer Sentiment Index improved modestly to 85.5 (final) in June from 82.9 but failed to help the USD find demand.
On the other hand, the barrel of West Texas Intermediate (WTI) is up 0.5+ on the day at $73.70, allowing the commodity-sensitive loonie to outperform its American counterpart. Later in the day, Banker Hughes’ weekly US Oil Rig Count data will be looked upon for fresh impetus.