- USD / CAD is under modest downward pressure during the American session.
- The DXY US Dollar Index is sloping lower towards 90.20 after the US debt auction.
- WTI appears to settle in negative territory below $ 53.
The pair USD / CAD it has risen to a daily high of 1.2747 at the start of the American session, but has not been able to maintain its bullish momentum. At the time of writing, the pair is trading at daily lows around the 1.2680 region.
USD weakens amid falling Treasury yields
Hours earlier, data released by the U.S. Bureau of Labor Statistics showed that the consumer price index December core CPI was unchanged at 1.6% YoY. This reading failed to trigger a significant market reaction and the DXY US Dollar Index continued to move sideways near 90.30.
However, at the end of the American session, a sharp drop in US Treasury yields following the 30-year US debt auction has caused the DXY index to lose traction. With the yield on the US 10-year bond shedding more than 4% on the day at 1.080%, the DXY Index has lost most of its daily gains, trading near 90.20.
Meanwhile, the barrel of West Texas Intermediate WTI trades with modest losses below $ 53, keeping Canadian dollar gains limited sensitive to raw materials versus rivals.
Later in the session, investors’ attention will turn to the US Federal Reserve’s Beige Book for fresh momentum.
USD / CAD technical levels