- USD/CAD recovery stalls below 1.3610.
- The Canadian dollar trims losses thanks to a slight rebound in oil prices.
- The fall in US Treasury Bonds weighs on the demand for dollars.
The U.S. dollar remains near 1.3600 on Thursday, after a strong recovery on Wednesday. The rise of the pair USD/CAD from 1.3485 it was capped at 1.3610 and has remained oscillating either side of the 1.3600 level for most of the day.
Canadian dollar rebounds as oil prices trim losses
The CAD is paring losses, after its weakest daily performance in two weeks, amid a subdued recovery in oil prices and the weak performance of the US dollar in a choppy trading session.
Oil prices have appreciated around $1.5 during the European session, with US benchmark West Texas Intermediate crude rallying to $78.40 from session lows of $76.80, which could have offered some support to the commodity-linked CAD.
On the macro front, US Initial Jobless Claims increased by 9,000 to 225,000 in the week of December 24, and the 4-week moving average was down 250 to 221,000 from the previous week. previous week, according to data published by the US Department of Labor.
These numbers have failed to cheer a dollar that has closely followed the slight decline in US Treasury yields. The Dollar Index has confirmed its decline below the 104.00 level, hitting fresh intraday lows at 103.66 so far.
At the time of writing these lines, the yield on the 10-year US bond stands at 3.867%, 1.5 basis points less than at the beginning of the session, when it had fallen 2.4%. Investor concerns about a possible recession in the first quarter of 2023 and a likely slowdown in the Fed’s tightening cycle are weighing on demand for US dollars.
In addition, news about the increase in COVID-19 cases in China and the escalation of tensions in Ukraine after the Kremlin’s refusal to accept Zelensky’s proposed peace agreement have shattered the optimism observed earlier this week. week after China lifted its restrictions on incoming travelers.
Technical levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
