- USD / CAD continues to push lower in the US session.
- The US dollar index falls below 91.50 despite the recovery in Treasury yields.
- Rising oil prices help the CAD gain traction against its rivals.
After trading in a relatively tight range below 1.2600 in the early trading hours of the US session, the pair USD / CAD it came under renewed downward pressure and fell to its lowest level since February 25 at 1.2546. At time of writing, the pair was down 0.53% on the day at 1.2550.
DXY falls below 91.50
The current selloff of the USD and rising crude oil prices continue to weigh on the USD / CAD.
Although the yield on 10-year US Treasuries is seeing a modest rally and gaining more than 1% on the day, the dollar is struggling to find demand. Pressured by market optimism, reflected by the strong rally seen in the major Wall Street indices, the US dollar index is down 0.38% to 91.48.
Meanwhile, a barrel of West Texas Intermediate is up 1.75% on the day at $ 65.80 and provides an additional boost to the commodity-related Canadian dollar.
Earlier in the day, data released by the U.S. Department of Labor showed that weekly Initial Unemployment Claims fell to the lowest post-pandemic level of 712,000 and were better than market expectations of 725,000.
On Friday, Statistics Canada will release the labor market report, which is expected to show that the unemployment rate fell to 9.2% in February from 9.4% in January. Until this data, the USD market valuation is likely to continue to affect USD / CAD movements.
Technical levels
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