- The USD / CAD pair was under modest downward pressure during the American session.
- The US Dollar Index fell below 91.00 with US Treasury yields pushing lower.
- WTI climbs above $ 64 after staying quiet earlier in the day.
After trading around 1.2300, the pair USD / CAD it came under modest selling pressure in the early trading hours of the US session and fell to the 1.2270 area. At time of writing, the pair was posting small daily losses at 1.2283.
USD selloff intensifies
The widespread selling pressure surrounding the dollar appears to be forcing the USD / CAD down. Following Friday’s impressive rally, the US dollar index turned south on Monday and was last seen shedding 0.45% to 90.90. The more than 2% drop seen in the benchmark 10-year US Treasury yield is putting additional weight on the USD’s shoulders.
Additionally, the major Wall Street indices have risen 0.6% to 0.9%, making it difficult for the dollar to attract investors as a safe haven.
Markit’s manufacturing PMI in Canada fell to 57.2 in April from 58.5 in March, but did not provoke a significant market reaction. On the other hand, ISM’s US manufacturing PMI declined to 60.7 from 64.7, disappointing analysts’ estimate of 65.
Meanwhile, the West Texas Intermediate (WTI) barrel, which was relatively quiet around $ 63.50 for the first half of the day, is currently rising more than 1% to $ 64.30, helping commodity-sensitive CAD. raw to retain your strength.
Later in the session, market participants will closely follow FOMC President Jerome Powell’s speech.
Technical levels
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