The USD and CAD have spent the last couple of days trading in a range of just over 100 pips, and the pair is currently sitting right in the middle of that range.

Earlier in the week the negative US data actually helped to strengthen the US side of this pair, as the implied demand for crude product fell and pushed down the price of oil. With the strong correlation between the Canadian currency and the value of the price of crude, and also considering that the US is the main recipient of Canadian exports (about 80%), it is easy to see how negative implications for the US can also have negative implications for the loonie. As the week moved along, however, it became readily apparent to investors that any remaining data would most likely take on a negative tone. And as the market is always forward-looking, the big moves in oil, and thus the USD/CAD pair, were already priced in over the last couple of days. Thus there was not much of an additional reaction to today’s events. As we head into next week, traders of this pair will want to pay close attention to the Canadian Building Permits and US ISM Non-Manufacturing reports due out on Tuesday.