Negative sentiment drags CAD to fresh weekly lows

The Canadian dollar has hit a new weekly low due to deteriorating market sentiment and falling crude oil prices. The US data has reduced risk appetite and deflated crude oil bids, leading more markets to turn back towards the US dollar.

Fresh weekly lows are expected since crude oil markets have continued to decline and WTI has already dived below $75 per barrel. WTI is trading at $74.795 at the time of writing. The Organization of Petroleum Exporting Countries has postponed a crucial meeting on production cuts due to Saudi Arabia’s dissatisfaction with member states’ unwillingness to adhere to reduced production quotas.

US Initial Jobless Claims have declined to a five-week low of 209K, highlighting tight labor conditions. The University of Michigan Consumer Inflation Expectations for November showed US consumers expect long-term inflation to remain above the Fed’s 2% target, with 3.2% inflation.

Elevated inflation expectations drive realized inflation, leaving investors hoping for an accelerated path for rate cuts out of the cold.