- USD / CAD gains traction after falling to the 1.2600 zone.
- The DXY US Dollar Index posts strong gains above 90.50.
- WTI is trading in negative territory near $ 63.00.
The pair USD / CAD it gained more than 80 pips on Thursday and remained relatively quiet around 1.2600 during the first half of the European session on Friday. However, with the USD retaining its strength, the pair has gained traction and has reached a new five-day high above 1.2650 in the last hour.
US bond yields continue to drive USD price action
The strong observed rebound in Treasury yields Thursday allowed the US dollar DXY index to take a sharp turn in the last American session. With the 10-year benchmark US Treasury yield rising by more than 10%, the DXY index closed in positive territory the day before, retaining its bullish momentum on Friday. At the moment, the DXY index is up 0.55% at 90.63.
On the other hand, a barrel of West Texas Intermediate WTI is losing 0.8% on the day about $ 63.00, weighing on the Canadian dollar, currency linked to the prices of raw materials.
Later in the day, the US Bureau of Economic Analysis will release the personal consumption expenditure (PCE) price index figures. The market consensus points to a reading of 1.4% in the annual PCE. A stronger than expected figure could provide additional boost to the USD in the second half of the day and vice versa.
In addition, data on personal spending, personal income and the US University of Michigan consumer sentiment index could also generate new momentum.
USD / CAD technical levels
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