USD/CAD has declined further ahead of the Canadian GDP data. Analysts expect a reading of 0.5% MoM compared to January’s 0.7%. Earlier in the week, the country recorded strong growth in retail sales at 4.8% MoM. The number was higher than the expected 4.0% and January’s -1.1%. The rise in crude oil price has also strengthened the Canadian dollar. WTI futures have risen from $60.63 on Monday to the week’s high of $65.45 on Thursday.
Despite the strong economic data and steady recovery, Canada is still struggling with the rising cases of COVID-19. On Wednesday, the Pan American Health Organization note that the infection rate in Canada has surpassed that of the US for the first time since the beginning of the pandemic. In the US, about a third of the populace has been fully vaccinated. In comparison, about 3% of Canadians have received the jab.