- The USD / CAD is still on track to break the five-day losing streak.
- The US Dollar Index bounces above 90.00 at the end of the US session.
- The yield on the 10-year US Treasury is increasing by almost 8%.
The pair USD / CAD It fell below 1.2500 for the first time in nearly three years on Thursday, but saw a strong rally in the latest US session. At time of writing, the pair was trading at 1.2584, up 0.57% on the day. With this latest rally, USD / CAD is still on track to break its five-day losing streak.
DXY rises above 90.00
Following the latest 7-year US Treasury auction, Treasury yields rose and gave the dollar a boost. The United States sold 7-year notes at 1.195%, compared with 0.754% in the previous auction. At the moment, the US Dollar Index is up 0.07% on the day at 90.24 and the benchmark 10-year Treasury yield is increasing nearly 8% to 1.489%.
On the other hand, a barrel of West Texas Intermediate (WTI) is trading in negative territory slightly above $ 63, making it difficult for the commodity CAD to show resistance against its US counterpart.
Earlier in the day, data from the US showed that real Gross Domestic Product (GDP) expanded at an annual rate of 4.1% (second estimate) in the fourth quarter as expected. Additionally, the Labor Department reported that weekly Initial Unemployment Claims decreased to 730,000 last week and were much better than market expectations of 838,000.
However, this data did not provide a boost to risk sentiment and the S&P 500 Index is shedding nearly 2% on the day.