The Canadian dollar has been on a downward trajectory this week, influenced by various economic factors and market movements. Despite an overall stronger U.S. dollar, the USD/CAD marked its third consecutive session of declines on Thursday, trading near the 1.3680 level. This comes amid a broader decline in the DXY index, which measures the greenback against a basket of other major currencies, falling to around 103.70 as stock markets showed signs of cooling off ahead of the U.S. Thanksgiving holiday.
The Loonie’s weakness was particularly noticeable on Wednesday as West Texas Intermediate (WTI) crude oil prices fell to $76.10. This decline in one of Canada’s top exports was attributed to delayed discussions among OPEC+ members and signs of a slowing US economy, both of which can have a significant impact on Canada’s commodity-driven economy.
Looking ahead, market participants are turning their attention to upcoming economic data releases. Canada’s retail sales figures will be closely watched for signs of health in consumer spending, while expected declines in the US S&P Global Purchasing Managers’ Indexes (PMIs) may provide further insight into the economic outlook. This focus on fresh data follows some significant releases from the U.S., including a sharper-than-expected 5.4% drop in durable goods orders, a drop in jobless claims to 209K, and an increase in consumer sentiment to 61.3.
