- USD / CAD reversed its direction after climbing above 1.2600.
- Falling US Treasury Yields Weighs on the USD.
- The US Dollar Index touched a new multi-week low below 92.00.
The pair USD / CAD it rose to a daily high of 1.2626 during European trading hours, but turned south in the second half of the day. At time of writing, the pair was virtually unchanged on the day at 1.2561.
The USD weakens after the US inflation report.
Hours earlier, rising US Treasury yields gave a boost to the dollar and the US Dollar Index (DXY) advanced to a session high of 92.32 with rising Treasury yields. of more than 1%.
However, the DXY reversed its direction as the 10-year Treasury yield fell into negative territory after the U.S. Bureau of Labor Statistics reported that the annual Basic Consumer Price Index rose to 1.6%. in March. Although this reading was slightly above the market expectation of 1.5%, it remained below the Fed’s 2% target and hurt the USD. Currently, the DXY is down 0.1% to 92.00.
On the other hand, a barrel of West Texas Intermediate (WTI) clings to daily gains above $ 60 and helps the commodity-related Canadian dollar retain its strength. In its monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said it raised the forecast for global oil demand growth in 2021 to 5.95 million barrels per day (bpd) from 5.89 million (bpd) previously.
No other macroeconomic data will be released for the remainder of the day and the USD market valuation is likely to remain the main driver of USD / CAD movements.