Canadian Dollar caps off Friday trading with a meager recovery, bolstered by rising Crude Oil

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• Canadian Dollar flows are resurfacing after Thursday’s nosedive, propped up by a reinvigorated oil bid.
• Canada economic data remains thin until Tuesday’s CPI print.
• US Dollar giving back yesterday’s gains after consumer sentiment miss.

The Canadian Dollar (CAD) caught a mild recovery on Friday, paring back Thursday’s dip after broad-market risk sentiment soured. Investors dog-piled into the US Dollar (USD) after a US Consumer Price Index (CPI) inflation beat reignited fears of Federal Reserve (Fed) interest rates remaining higher for even longer than markets are currently hoping for.

Canada’s Crude Oil-linked Loonie is getting pushed higher after oil markets catch a firm bid on Friday, and Canadian Dollar traders will be looking to close out Friday’s market session in the green after setting a new low for the week yesterday.

Daily Digest Market Movers: Canadian Dollar in limited recovery mode as Crude Oil bounces

• Canadian Dollar rebounding on Friday, walking back Thursday’s losses; however downside risk remains as markets favor Greenback.
• Investor sentiment is recovering after a sharp downturn yesterday.
• Crude Oil markets are back on the rise as Middle east geopolitical tensions take a bite.
• The US tightened loopholes on their sanctions against Russian oil, sending barrel prices higher.
• Crude Oil traders are worried that the Gaza Strip conflict escalation could spill over into more US fossil fuel sanctions on Iran.
• CAD traders will be looking ahead to Tuesday’s CPI reading.
• US Michigan Consumer Sentiment missed the mark on Friday, helping to edge the USD lower.
• BoC\'s Macklem: Not really seeing downward momentum in underlying inflation
• What we’ll be watching: USD, CAD factors – NBF

Technical Analysis: Canadian Dollar looking to regain ground, USD/CAD cycling near 1.3660

After knocking into 1.3700 and marking in a new low for the week, the USD/CAD is easing back into familiar territory, and intraday action sees the pair trading closely with the 200-hour Simple Moving Average (SMA), with intraday technical support coming from the 50-hour SMA near 1.3640.

On the daily candlesticks, the USD/CAD is poised for a bearish extension back into the 50-day SMA near 1.3550, with long-term support coming from the 200-day SMA just north of 1.3450.

Despite recent strength on the part of the Canadian Dollar, the USD/CAD remains a well-bid pair, still up over 2% from September’s swing low into 1.3380.