- USD / CAD cuts losses after hitting two-year lows at 1.2930.
- The Canadian dollar appreciates as oil prices rise.
- The US dollar is rebounding thanks to higher yields on US Treasuries.
The dollar is cutting losses on Monday, attempting to return above the 1.3000 psychological level after hitting prices below 1.2950 for the first time in more than two years.
Canadian dollar appreciates as crude prices rise
The commodity-sensitive Canadian dollar opened the week at a solid pace, driven by rising crude prices after pharmaceutical company Pfizer announced that the first tests of its COVID-19 vaccine show a 90% effectiveness. .
The West Texas Intermediate (WTI) price of a barrel rose more than 6% after Pfizer announced its test results, and is up nearly 8% on the day. WTI prices have returned to levels above $ 40 after falling to five-month lows below $ 34 two weeks ago on concerns about the impact of the second wave of lockdowns on global oil demand.
However, the dollar has managed to cut losses during the US trading session, as optimism about a coronavirus vaccine has also been reflected in rising US Treasury yields. The 10-year Treasury bond rose 13 basis points to 0.95%, and the benchmark rate reached 0.975% for the first time since March.
Credits: Forex Street
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