Ella 
In early trading in Asia on Friday, USD/CAD tried to end its two-day winning streak, hovering around 1.3480. A pullback in the U.S. dollar, coupled with rising crude oil prices, supported the Canadian dollar.
At press time, West Texas Intermediate crude oil was trading at $89.50 a barrel, trying to consolidate recent gains. The rally was driven by OPEC+’s intention to cut production in an attempt to reduce the supply of crude oil on the market.
At press time, the U.S. dollar index was trading higher near 105.40, which may be partly attributed to rising U.S. Treasury yields. As of press time, the 10-year U.S. Treasury yield has risen to 4.50%.
Market participants are likely to keep a close eye on economic data releases, including preliminary U.S. S&P Global Purchasing Managers’ Index data for September and Canadian retail sales for July. Investors will use these data to understand the economic conditions of the United States and Canada, which will help them seek USD/CAD trading opportunities.
U.S. economic data released on Thursday were mixed. Initially, U.S. economic data boosted the dollar and pointed to a vibrant labor market. However, the dollar then began to pull back.
The number of people filing for unemployment benefits in the United States for the week ended September 15 was 201,000, which was slightly lower than the previous figure of 221,000 and was the lowest level since January. The expected value for this number is 225,000.
The Philadelphia Fed manufacturing index fell to -13.5 in September from a previous reading of positive 12, against expectations of -0.7. Existing home sales in August fell to 4.04 million from 4.07 million previously, against expectations for a gain of 4.1 million.
As widely expected, the Federal Reserve (Fed) decided to keep interest rates in a range of 5.25-5.50% at its meeting on Wednesday.
Federal Reserve Chairman Jerome Powell reiterated at a press conference that the central bank is committed to achieving its 2% inflation target, while also saying that the central bank is prepared to raise interest rates if deemed necessary.
