USD/CAD continues to lose ground for the third consecutive session, bidding lower near 1.3680 during the Asian hours on Thursday. The USD/CAD pair encounters a hurdle as market participants are adjusting to the likelihood of no additional rate hikes by the Fed. which erodes the safe-haven allure of the US Dollar (USD). However, the Canadian Dollar (CAD) faced a setback against the Greenback, driven by the drop in Crude oil prices. The decline in Western Texas Intermediate (WTI) prices persisted, prompted by an unexpected delay in an upcoming OPEC+ meeting. This delay introduces uncertainty regarding the potential magnitude of additional supply cuts by the producer group. US Dollar Index (DXY) steps back after notching gains for two consecutive days, hovering around 103.70 as of now. However, the Greenback might have gained some support following an upward revision in inflation expectations among American households. This shift triggered a rise in Treasury bond yields in the United States (US), potentially offering support to the buck.
The University of Michigan Consumer Sentiment poll disclosed that inflation expectations for a one-year period increased to 4.5% from the previous report’s 4.4%, while it stood at 3.2% for a five-year period. Additionally, US Durable Goods Orders in October declined by 5.4%, falling short of the market consensus of 3.1%. Meanwhile, US Jobless Claims reported a larger-than-anticipated drop for the week ending on November 17, decreasing to 209K from the previous 233K. Looking ahead, investor focus is likely to shift to Friday’s Retail Sales figures from Canada. US markets will be closed on Thursday for Thanksgiving Day. US is slated to unveil the preliminary S&P Global Manufacturing and Services PMI for November on Friday, both with expectations leaning towards a decline.
