USD / CAD falls to new daily lows near 1.2070 due to renewed dollar weakness

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  • USD / CAD broke below its daily trading range during the American session.
  • The US Dollar Index retreats towards the 90.00 area after the latest US data.
  • WTI rises above $ 70 after Wednesday’s modest decline.

After spending most of the day in a very tight range around 1.2100, the pair USD / CAD it lost its traction during US business hours and fell to a daily low of 1.2068. At time of writing, the pair was down 0.25% on the day to 1.2076.

Risk flows hurt the USD

Data released by the US Bureau of Labor Statistics revealed on Thursday that annual inflation, as measured by the Consumer Price Index (CPI), rose to 5% in May from 4.2% in April. This reading was higher than analysts’ estimate of 4.7%. Additionally, the US Department of Labor reported that initial jobless claims decreased to 376,000 last week, compared to market expectations of 370,000.

While the initial market reaction allowed the dollar to remain strong against its rivals, the positive shift in market sentiment made it difficult for the currency to continue to find demand.

With the S&P 500 opening decisively higher and marking a new all-time high, the US Dollar Index turned south and was last seen losing 0.08% on the day at 90.06.

On the other hand, a barrel of West Texas Intermediate (WTI) is up 0.6% on the day to $ 70.15, helping the commodity-sensitive Canadian dollar outperform rivals and keeping the USD / CAD holding. in negative territory.

Technical levels

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