- USD / CAD struggles to find direction after Wednesday’s bounce.
- The US Dollar Index remains flat below 91.00 after the release of mid-level data.
- WTI is trading lower below $ 65 on Thursday.
The pair USD / CAD It rose to a daily high of 1.2157 on Thursday, but struggled to preserve its bullish momentum. At time of writing, the pair is trading at 1.2130, where it was virtually unchanged on a daily basis.
The broad-based USD strength supported by strong Consumer Price Index data allowed the USD / CAD to rally on Wednesday. With the 10-year US Treasury yield rising more than 4% due to rising inflation, the US dollar index rose nearly 0.7%.
Investors pay little or no attention to the latest US data.
On Thursday, the US Bureau of Labor Statistics reported that the annual Producer Price Index (PPI) jumped to 6.2% in April from 4.2% in March. This reading was higher than the market expectation of 5.9%, but failed to trigger a significant market reaction. Additionally, initial weekly jobless claims dropped to 473,000 from 507,000. After the release of these data, the DXY remains flat on the day near 90.70.
On the other hand, a barrel of West Texas Intermediate is shedding 2% at $ 64.30 on Thursday, making it difficult for commodity-sensitive CAD to attract investors.
Meanwhile, the S&P 500 Futures, which spent much of the day in negative territory, is currently up 0.3%, suggesting that the USD could struggle to find demand if market sentiment improves after the bell. opening.
Technical levels
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