**USD/CAD Stays Below 1.4050 as Oil Gains, US Data Concerns Persist**
USD/CAD inched lower after registering gains in the previous session, trading around 1.4020 during the Asian hours on Friday. The pair remains subdued as the commodity-linked Canadian Dollar (CAD) receives support from higher oil prices.
It is worth noting that Canada is the largest crude exporter to the United States (US), which ties the Canadian Dollar closely to movements in oil prices. West Texas Intermediate (WTI) crude oil prices gained for the second consecutive session, trading around $59.50 at the time of writing — up by more than 1.5%.
Crude prices rose following a Ukrainian drone strike that damaged an oil depot at Russia’s Black Sea port of Novorossiysk. According to the Krasnodar region’s operational headquarters on Telegram, drone debris hit three apartments, an oil facility at a trans-shipment complex, and several coastal structures, as reported by Reuters.
The USD/CAD pair also faces downward pressure as the US Dollar (USD) struggles amid ongoing economic caution in the United States. This caution has overshadowed improved sentiment following the recent government shutdown’s end.
National Economic Council Director Kevin Hassett warned that some October data may “never materialize” because several federal agencies were unable to gather information during the 35-day government shutdown. However, US President Donald Trump signed the government funding bill on Thursday, officially ending the record 43-day shutdown in US history.
Despite the decline, the Greenback may regain ground amid cautious comments from Federal Reserve (Fed) officials, which have reduced the odds of a Fed rate cut in December. The CME FedWatch Tool shows markets now pricing in nearly a 50% chance of a 25-basis-point rate cut, down from 69% a week ago.
Federal Reserve Bank of St. Louis President James Bullard emphasized the need for caution on Thursday, noting limited room for easing policy without risking overly accommodative conditions. Meanwhile, Minneapolis Fed President Neel Kashkari highlighted that inflation remains too high at 3%, suggesting that further cuts may be premature.
Initial private-sector reports for October suggest a cooling labor market and wavering consumer confidence, adding to the complexities faced by policymakers and markets moving forward.
—
*Stay tuned to BitcoinEthereumNews.com for the latest updates on USD/CAD movements, oil prices, and US economic developments.*
https://bitcoinethereumnews.com/finance/usd-cad-stays-below-1-4050-as-oil-gains-us-data-concerns-persist/
