- CAD loses steam as Wall Street fails to stay in positive territory.
- The DXY bounces to test daily highs as US yields climb.
USD / CAD clears daily losses and is back near the 1.2700 area after previously falling to 1.2659, the lowest level since January 22. A rally in the US dollar across the board boosted the pair.
Wall Street turns lower, US yields rise
Market confidence deteriorated in recent hours. The Dow Jones failed to sustain gains and is down 0.21%, while the Nasdaq is far from the high, still up 0.22%. In the bond market, US yields are higher. The 10-year yield is up about 3% to 1,158%.
Higher yields and deteriorating market sentiment help the US dollar. The DXY is testing the daily high at 90.45. Hours ago it fell to the weekly low near 90.20.
USD / CAD is about to test 1.2700 as price action picks up speed in financial markets. In FX, many currency pairs still remain in limited ranges probably due to lack of volume considering the New Year holidays in China.
From a technical perspective, Risks Still Sloping Down in USD / CAD, but the dollar is likely to strengthen if it sustains above 1.2700. The next resistance is seen at the 20-day moving average at 1.2745. A daily close well below 1.2700 would point to further losses.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
