Although it doesn’t follow through, USD/CAD rebounds off the weekly low it reached earlier on Friday. The demand for the USD is rekindled, and the major gains some support from an increase in US bond rates. The Loonie is supported by a modest increase in oil prices, which also restrains any significant rebound.

The USD/CAD pair experiences some purchasing in the 1.3315–1.3320 range and makes a little comeback from a new weekly low reached earlier this Friday. While lacking bullish conviction, USD/CAD maintains its gains at the 1.3350 area through the early North American session and seems to have ended a three-day losing skid for the time being.

The US Dollar gains momentum on the last day of the week thanks to a slight increase in US Treasury bond rates, which is regarded as providing some support for the USD/CAD pair. However, the USD bulls are being restrained from making risky bets, and the increasing belief is limiting the major’s upward potential that the Fed would decrease the pace of its policy tightening.

It is important to remember that the Federal Open Market Committee (FOMC) meeting minutes from November, which were made public on Wednesday, showed that policymakers were mainly confident they could halt front-loading rate rises. This, in turn, confirms predictions for a comparatively lower rate increase of 50 basis points at the FOMC’s next policy meeting in December. Aside from this, the safe-haven Greenback is kept in check by an overall positive risk tone.

Furthermore, the commodity-linked Loonie is supported by a goodish increase in Crude Oil prices, which further weighs on the USD/CAD pair despite sparse trade volumes. The underlying background calls for some prudence before preparing for any more intraday bullish rise in the absence of any significant market-moving economic release from the US or Canada.