• Canadian Dollar dives further with the USD rallying across the board.
• The CAD has depreciated about 1.23% this week, on its worst weekly performance in almost a year.
• USD/CAD is on a steady bullish trend, focusing on 1.3770 and 1.3845

The Canadian Dollar (CAD) is selling off for the third day in a row on Friday, on track to post its worst weekly performance in almost a year. The US Dollar is marching higher, fueled by higher US yields, as the market reassesses the timing and the size of the US Federal Reserve’s (Fed) easing cycle.

The Michigan Consumer Sentiment Index deteriorated beyond expectations, although the Consumer Inflation Expectations have ticked up. These data have failed to weigh on the US Dollar, which has received additional support from the European Central Bank’s (ECB) dovish monetary policy statement.

Somewhat earlier, on Friday, Boston Fed President Susan Collins anticipated a delay on the monetary easing kick-off, hinting at September, and pointed to just two cuts in 2024.