USD / CAD falls below 1.2600 – Falling oil prices limit further losses

  • USD / CAD is trading with modest losses below 1.2600.
  • WTI reduces daily earnings and stabilizes below $ 65.00.
  • The US Dollar DXY Index remains deep in negative territory near 91.50.

After rising towards 1.2700 on Wednesday, the pair USD / CAD It turned its course and closed in negative territory at 1.2617. With the USD struggling to find demand on Thursday, the pair has extended its decline. At the time of writing, the pair is shedding 0.27% on the day at 1.2583.

Falling Treasury Yields Weighs on the USD

USD price action remains the main driver of USD / CAD movements in the second half of the week. Pressured by the sharp drop in US Treasury yields., the US dollar DXY index is losing 0.3% at 91.55.

Later in the day, the focus will turn to weekly data on initial unemployment claims and JOLTS job openings for January to get a new boost.

On the other hand, poor performance in crude oil prices keeps CAD gains limited, currency linked to the prices of raw materials, for the moment. Earlier in the day, a barrel of West Texas Intermediate WTI rose to a daily high of $ 65.60, but lost traction and stabilized near $ 64.80.

In the meantime, the Bank of Canada (BoC) decided to keep its monetary policy rate unchanged at 0.25% as expected on Wednesday and failed to trigger a noticeable reaction in the market. Bank of Canada Deputy Governor Lawrence Schembri is scheduled to deliver a speech at 18:30 GMT. On Friday, the Canadian Labor Market Report will be the last major data release of the week.

USD / CAD technical levels

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