USD/CAD climbs above 1.2100 on renewed USD strength

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  • USD/CAD rose above 1.2100 ahead of American session.
  • US Dollar Index edges higher on recovering US T-bond yields.
  • Eyes on the UoM’s US consumer confidence data.

The USD/CAD pair gained traction ahead of the American session and rose to a session high of 1.2109. As of writing, the pair was up 0.1% on the day at 1.2106. Despite this modest recovery, the pair stays within its tight weekly range and looks to end the week flat.

 USD outperforms its rivals on Friday

The renewed USD strength seems to be helping USD/CAD push higher on Friday. The US Dollar Index (DXY), which closed in the negative territory, reversed its direction on Friday and was last seen gaining 0.26% at 90.30. In the absence of high-tier macroeconomic data releases and fundamental drivers, the 1% rebound witnessed in the 10-year US Treasury bond yield seems to be helping the greenback find demand.

Later in the session, the University of Michigan will release the initial estimate of the US Consumer Sentiment Index for June.

First-quarter Capacity Utilization data will be featured in the Canadian economic docket. Moreover, Bank of Canada Deputy Governor Paul Beaudry is scheduled to deliver a speech at 1500 GMT.

Meanwhile, the barrel of West Texas Intermediate (WTI) is rising 0.5% on the day at $70.40, helping the commodity-sensitive loonie limit its losses for the time being.

Technical levels to watch for

 

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