USD / CAD retraces below 1.2600 in a swinging session

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  • The USD / CAD is struggling to make a decisive move in either direction.
  • The US Dollar Index remains in negative territory below 92.30.
  • WTI posts modest losses after closing the previous two trading days in green.

After rising for two days in a row and hitting its highest level in a week at 1.2636 on Wednesday, the pair USD / CAD It appears to have entered a consolidation phase and was last seen losing 0.1% on the day at 1.2595.

DXY Turns South As US Treasury Yields Fall

On Wednesday, the dollar gained traction against its rivals as the yield on 10-year US Treasuries rose more than 1% on the day. With the US Dollar Index (DXY) rebounding, USD / CAD managed to close in positive territory.

On Thursday, however, the DXY came under renewed downward pressure with the yield on the US 10-year Treasury that erased most of Wednesday’s gains and made it difficult for the USD / CAD to continue rising. At the moment, the DXY is losing 0.2% to 92.23.

On the other hand, a barrel of West Texas Intermediate is recording small daily losses of around $ 59.50, limiting the USD / CAD decline for the time being.

Later in the session, weekly data from initial jobless claims from the US Department of Labor will be analyzed for fresh momentum. A better than expected reading could propel the major Wall Street indices and force the USD to remain on the defensive in the second half of the day. Additionally, FOMC President Jerome Powell will deliver a speech at 16:00 GMT. No macroeconomic data will be published in the Canadian Economic File.

Technical levels

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