USD/CAD faces pressure as crude oil drops 0.28% to $57.44

Crude oil futures closed the week at $57.44, declining $0.16 or 0.28%, which typically supports the Canadian dollar against its US counterpart. The modest decline in oil prices reflects ongoing market consolidation after recent volatility. As Canada's primary export commodity, oil price movements directly impact CAD strength, with lower oil prices generally weighing on the currency. However, the relatively small percentage decline suggests limited immediate impact on USD/CAD. The pair has been trading in a tight range, with oil prices providing marginal directional bias. Technical indicators show USD/CAD holding above key support levels despite the oil weakness. Traders should monitor the $57.00 psychological level in crude oil, as a break below could accelerate CAD weakness and push USD/CAD higher. The upcoming week's oil inventory data and OPEC commentary will be crucial for determining whether this decline marks the beginning of a larger correction or merely represents end-of-week profit-taking.