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USD/CAD Hovering at its Lowest in Months as Omicron and Upcoming Data Take Their Toll

December 3, 2021

The Canadian dollar strengthened slightly against the U.S Dollar on Thursday but held near its lowest level in over two months, as investors assessed the global economic impact of the Omicron coronavirus variant and looked ahead to domestic data.

The Canadian dollar was trading 0.1% higher at 1.2807 to the Dollar, or 78.08 U.S. cents, after touching intraday 1.2837, which was the 10-week low it hit on Tuesday.

The U.S. federal government is approaching its $28.9 trillion borrowing limit, which the Treasury Department has estimated it could reach by Dec. 15. Failure to extend or lift the limit in time could trigger an economically catastrophic default.

Meanwhile, Global equity markets remained volatile as countries ramped up restrictions to curb the variant’s spread.

The price of oil , one of Canada’s major exports, clawed back some recent losses as OPEC+ stuck to its policy of incrementally boosting output. U.S. crude oil futures settled 1.4% higher at $66.50 a barrel.

Also, the Canadian employment report for November is due on today, which could offer clues on the strength of the domestic economy.

Canadian Prime Minister Justin Trudeau’s government will outline limited new spending in a fiscal update to be released later this month, a source said, as inflation soars and some business groups and opposition politicians call for restraint.

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