• USD/CAD depreciates as the US Dollar continues to lose ground.
• Upbeat WTI price contributes support for the Loonie Dollar.
• DXY hovers around four-month lows amid the dovish Fed’s outlook.

USD/CAD extends its losses on the third successive day, trading lower around 1.3390 during the Asian session on Friday. The USD/CAD pair faces challenges on the subdued US Dollar, which could be attributed to the lowered US Treasury yields.

Market watchers anticipate Bank of Canada (BoC) Governor Tiff Macklem's scheduled appearance on Friday. This event holds potential significance, with participants expected to keenly focus on any insights or comments he provides regarding the Canadian economic outlook and monetary policy.

The West Texas Intermediate (WTI) price trades around $72.30 per barrel during the Asian session on Friday, driven by anticipated oil demand for 2024 and a weakened US Dollar (USD). Given Canada's position as the largest oil exporter to the United States (US), the improved WTI price could contribute to supporting the CAD in its exchange with the USD.

The US Dollar Index (DXY) dropped to a four-month low registered at 101.77 on Thursday, trading around 101.90, by the press time. The negative momentum for the US Dollar persists following the Federal Open Market Committee (FOMC) statement. The US Federal Reserve's (Fed) cautious stance on interest rates and the potential for a more accommodative monetary policy in 2024 contribute to the persistent weakness in the Greenback.

Despite better-than-expected economic data from the US, which showed a 0.3% rise in Retail Sales (MoM) for November against an expected decline of 0.1% and Initial Jobless Claims coming in at 202K compared to the anticipated 220K, the support for the USD remains modest. Investors will likely watch the S&P Global Purchasing Managers Index (PMI) data on Friday to gain further impetus on economic conditions in the United States