Despite higher oil prices, Canada retail sales, and US PMI, USD/CAD buyers assault 1.2900
With the help of the bids, the USD/CAD renews its intraday high and cuts its first weekly loss in four. The US dollar's recovery and the restart of Nord Stream 1 are ignored by oil prices. Mixed Canadian GDP data and ECB-induced USD depreciation earlier supported bears. It will be crucial to keep an eye on US PMIs and Canada Retail Sales for obvious indications.

During Friday's Asian session, USD/CAD picks up bids to retest an intraday high at 1.2895. In doing so, the Loonie pair ignores rising WTI crude oil prices, which are Canada's main export and justify a stronger US currency during a lethargic day.
The ECB's decision to limit the market's confidence as well as long-standing worries about a recession and COVID are the sources of the most recent dip in mood. Demand for safe haven assets like the US dollar is also supported by the Federal Open Market Committee meeting next week (FOMC). Notably, the lack of significant data or events and the cautious atmosphere before to the flash readings of the US S&P Global PMIs for July and the Canadian Retail Sales for May further support the USD/CAD values.
As risk aversion returns to the market, the US Dollar Index (DXY) picks up bids to retest its intraday high around 106.70, up 0.12% on the day. However, Wall Street benchmarks ended the day stronger and the 10-year Treasury rates for the US had their greatest daily decline in five weeks. S&P 500 Futures, however, are down 0.45% as of the time of publication.
It's important to remember that the US dollar was drowned the day before by a decline in US Treasury rates brought on by the European Central Bank's (ECB) unexpected 50 basis point (bps) rate rise. The Transmission Protection Instrument (TPI), a new instrument to control chaotic market dynamics in the bloc, was revealed on the same line.
The previous day's risk-on attitude and the weaker US currency on the resumed gas flows from Russia's Nord Stream 1 pipeline, however, were not lifted by the oil prices. WTI crude oil is presently consolidating its worst daily decline in eight days as it trades close to $96.20.
Moving on, it is anticipated that the US S&P Global Manufacturing PMI will fall from 52.7 to 52.0, while the services PMI may drop to 52.6 from 52.7. As a result, the Composite PMI may fall from 52.3 to 51.7. Given the pessimistic predictions for the US data, the US dollar may have more headwinds, which might benefit the USD/CAD bears if the Canada Retail Sales come in at the predicted 1.6 percent MoM for May, up from the previous 0.9 percent.
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