USD/CAD retreats from one-month high, downside remains cushioned amid stronger USD – by hareshmenghani USDCAD Recession Fed RiskAversion Currencies
underpins the commodity-linked loonie, which, in turn, is seen as a key factor acting as a headwind for the USD/CAD pair. Concerns that the European Union embargoes on Russian oil imports could tighten supply offer support to the black liquid. That said, efforts to revive Iran's nuclear deal and worries about a global economic downturn could cap any meaningful gains for the commodity.
on Friday. Apart from this, traders this week will take cues from important US macro data. This, in turn, should influence the USD demand and provide a fresh directional impetus to the USD/CAD pair. In the meantime, absent relevant economic releases on Monday, either from the US or Canada, should hold back investors from placing aggressive bets.