USD / CAD remains negative around the 1.2300 level after US GDP data.

• USD / CAD is struggling to make a rebound on Thursday.
• The US economy grew 6.4% in the first quarter of 2021.
• Rising crude oil prices continue to support the CAD.

The pair USD / CAD touched its lowest level in more than three years at 1.2278 on Thursday and he seems to be having a hard time pulling off a convincing bounce. At the time of writing, the pair is down 0.14% on the day, trading at 1.2298.

Rising Oil Prices Provides A Boost To CAD

Earlier in the day, data released by the US Bureau of Economic Analysis has revealed that the US economy grew 6.4% (first estimate) on an annual basis in the first quarter of 2021. This figure has been better than the market expectation of 6.1%. What’s more, weekly initial jobless claims decreased to 553,000 from 566,000.

Yields on US Treasuries have continued to rise after this data and have allowed the US dollar to gain strength against its rivals.. At the moment, the benchmark 10-year US Treasury yield is up nearly 4% on the day and the US Dollar Index is up 0.1% to 90.68.

However, the sharp rise in crude oil prices helps the Canadian dollar, a currency linked to commodity prices, to find demand and limits the rise in the USD / CAD. At the time of writing, a barrel of West Texas Intermediate WTI is trading at its highest since mid-March at $ 65.30, up 2.6% on the day.

There will be no other high-level macroeconomic data releases from the US for the remainder of the day. Meanwhile, S&P 500 futures are up 0.7% and the US dollar could face some downward pressure if the major Wall Street indices move higher after the opening bell.

USD / CAD technical levels