• USD/CAD strengthened on Friday as the Canadian dollar weakened after data showed Canada’s manufacturing sector contracted for an 11th consecutive month in December.
• The S&P Global Canada Manufacturing PMI rose slightly to 48.6 in December from 48.4 in November, staying below 50 for a tenth month and signaling continued contraction.
• Oil prices eased after posting their biggest annual loss since 2020, as investors weighed oversupply concerns against ongoing geopolitical risks.
• U.S. crude slipped 0.17% to settle at $57.32 a barrel, while Brent fell 0.16% to $60.75 a barrel..
• The dollar firmed on the first trading day of 2026 as investors looked ahead to economic data that could shape Federal Reserve policy and global markets.
• Immediate resistance is located at 1.3744(38.2%fib), any close above will push the pair towards 1.3773 (SMA 20).
• Support is seen at 1.3661(Daily low) and break below could take the pair towards 1.3631(Lower BB).
Recommendation: Good to buy around 1.3720 with stop loss of 1.3650 and target price of 1.3850
