USD / CAD extends daily decline to 1.2570 as USD selloff continues

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  • USD / CAD is still on track to break its two-day winning streak.
  • The US Dollar Index is testing 92.00 in the American session.
  • The yield on 10-year US Treasuries is down more than 2%.

After spending the first half of the day in a tight channel around 1.2600, the pair USD / CAD it came under renewed downward pressure and hit a daily low of 1.2563. At time of writing, the pair was down 0.28% on the day at 1.2572.

USD selloff remains intact

The market valuation of the USD remains the main driver of the USD / CAD movements on Thursday. With the 10-year US Treasury yield shedding more than 2% on the day, the US Dollar Index (DXY) fell to its lowest level in more than two weeks at 91.99 and was last seen shedding 0.42. % on the day to 92.04.

The only US data showed that initial weekly jobless claims rose 16,000 to 744,000 in the week ending April 3. This reading was worse than analysts’ estimate of 680,000, but was largely ignored by market participants.

While speaking at a conference hosted by the International Monetary Fund (IMF), FOMC Chairman Jerome Powell reiterated that they see upward pressure on prices that is likely to be temporary this year. Powell further noted that they will continue to support the economy and did not help the dollar make a recovery.

On the other hand, the barrel of West Texas Intermediate (WTI) continues to fluctuate in a narrow range below $ 60 on Thursday, allowing the USD / CAD to continue to react to the movements of the DXY.

On Friday, the Canadian labor market report and US producer price index (PPI) data will be considered for further momentum.

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