USD/CAD drops to fresh September lows as the US Dollar weakens globally and rising oil prices bolster the Canadian Dollar's momentum.
The pair is experiencing a sustained downtrend, marking its third consecutive day of losses and hitting its lowest level since September 16. This movement is primarily driven by broad-based weakness in the US Dollar during the Friday Asian session.
The pair is in a bearish trend, having reached a new low since September 16 due to a weaker US Dollar.
Rising oil prices act as a fundamental tailwind for the Canadian Dollar, as Canada is a major oil exporter. The strength in the commodity market directly correlates with the downward pressure observed in the USD/CAD pair.
As a commodity-linked currency, the Canadian Dollar typically strengthens when oil prices rise, putting downward pressure on the USD/CAD exchange rate.
The USD/CAD pair extended its decline for a third consecutive session, hitting its lowest level since September 16 during Friday's Asian trading. Broad-based selling pressure on the US Dollar continues to weigh on the pair, while rising WTI crude oil prices provide additional support to the Canadian currency.
The pair is sliding primarily due to a broadly weaker US Dollar and support for the Canadian Dollar from rising global oil prices.