USD/CAD broke a two-day losing skid in the European session, breaking a two-day losing skid due to weak US Dollar. Increased US Treasury yields may prevent further dollar losses.

Canada’s significant supply of crude oil to the US, coupled with higher WTI Crude oil prices, is bolstering the strengthening of the Canadian Dollar (CAD), limiting the potential strength of the USD/CAD pair.

The US crude oil benchmark, Western Texas Intermediate (WTI), is currently trading at $87.30 per barrel, reaching its highest levels since November 2022 due to sustained supply reductions by Saudi Arabia and Russia.

Tiff Macklem, Bank of Canada governor, suggests restraining monetary policy to restore price stability, despite concerns about ongoing inflation.

Future Events
This week’s significant events include the release of the US CPI, Jobless Claims, PPI, and Retail Sales data, as well as the release of the University of Michigan Consumer Sentiment report on Friday.

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