The weekly gain in USD/CAD was the largest since the first week of May 2016 when the Alberta wildfires triggered a sharp drop in the Canadian currency.
A stronger US dollar attributed to gains as the greenback rose on the back of a signal for a March rate hike from the Federal Reserve. Comments from Fed officials throughout the week hinted that rates should be hiked sooner than later. Fed chair Yellen confirmed on Friday that March was a live meeting and that an increase would occur as long as economic progress towards objectives continued. The stipulation puts a spotlight on the US jobs report which is scheduled for release on Friday.
The Bank of Canada retained a cautious tone at their meeting this past week. Recent gains in inflation were considered temporary and while labor data showed improvement in the latest report the central bank indicated that subdued wage growth pointed to persistent economic slack.