Anna 
The Canadian Dollar (CAD) has extended its gains for the third consecutive session on Friday, poised for a modest weekly recovery following a notable decline in the previous two weeks. A weakening US Dollar, coupled with diminishing concerns surrounding the Middle East conflict, has bolstered the Loonie’s resurgence.
The absence of significant macroeconomic data has contributed to the softer tone of the US Dollar, prompting investors to engage in profit-taking activities. Market sentiment appears to reflect an acceptance of the likelihood that the Federal Reserve (Fed) will postpone and potentially reduce its plans for monetary easing, providing some relief for the greenback. Although Chicago Fed President Austan Goolsbee has highlighted concerns regarding the lack of progress on inflation, the impact on the US Dollar has been relatively limited.
Moreover, Iranian authorities have downplayed speculation surrounding a drone attack by Israel, alleviating immediate fears of a further escalation in geopolitical tensions. As the risk of heightened aversion subsides, the CAD stands to benefit from the improved sentiment in the market.
