USD/CAD struggles at 1.2700

Market sentiment dampened the appetite for high beta currencies like the Canadian dollar, so, the USD/CAD pair has dropped 40-pips on the back of the climb to new monthly highs recorded by West Texas Intermediate crude oil.
In the next week, the Canadian GDP report will be the major focus of investors. Earlier, Friday, in the American session, the Canadian dollar was trading above 1.2700 on the back of dampened market sentiment caused by various factors.
As the session continued, the USD/CAD was barely up 0.09%, trading at 1.2667.
concerns on Evergrande’s bedt crisis could materialize. The Chinese real-estate giant failed to pay the interest in the dollar-denominated bond due on Thursday, though it has 30-days to fulfill the coupon.
The Federal Reserve’s prospect of bond tapering later in 2021, and half of the FOMC members looking for a rate hike in the second half of 2022, according to the dot-plot, also weighed in the prevalent sentiment.