USD/CAD is tracking the ongoing strength in the US dollar across its main competitors, consolidating near seven-week tops, starting out a fresh week on the right footing.
The major got a double booster shot from the risk-averse market conditions on Friday, as the covid resurgence in Europe and risks of a potential lockdown weighed heavily on the market sentiment.
The resultant risk-off trading lifted the US dollar’s safe-haven demand while raising concerns over the demand for fuel, knocking off WTI prices to the lowest levels in seven-week below the $75 mark.
Meanwhile, the loonie buyers failed to benefit from the upbeat Canadian Retail Sales data. The Canadian consumer spending outpaced the market’s expectations on Friday, arriving at -0.6% MoM in September vs. -1.7% expected.
Looking ahead, the sentiment around the US dollar and oil prices will continue influencing the currency pair, as investors keep an eye on the latest covid updates amid a data-sparse economic calendar on Monday.
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