- USD/CAD continues to push lower in the American session.
- US Dollar Index drops below 91.50 despite recovery T-bond yields.
- Rising crude oil prices help CAD gather strength against its rivals.
After trading in a relatively tight range below 1.2600 in the early trading hours of the American session, the USD/CAD pair came under renewed bearish pressure and fell to its lowest level since February 25 at 1.2546. As of writing, the pair was down 0.53% on the day at 1.2550.
DXY drops below 91.50
The ongoing USD selloff and rising crude oil prices continue to weigh on USD/CAD.
Although the 10-year US Treasury bond yield is staging a modest rebound and gaining more than 1% on the day, the greenback is having a tough time finding demand. Pressured by the upbeat market mood, as reflected by the sharp upsurge seen in Wall Street’s main indexes, the US Dollar Index is down 0.38% at 91.48.
Meanwhile, the barrel of West Texas Intermediate is rising 1.75% on a daily basis at $65.80 and providing an additional boost to the commodity-related loonie.
Earlier in the day, the data published by the US Department of Labor showed that the weekly Initial Jobless Claims dropped to the lowest post-pandemic level of 712K and came in better than the market expectation of 725K.
On Friday, Statistics Canada will publish the labour market report, which is expected to show that the Unemployment Rate declined to 9.2% in February from 9.4% in January. Until this data, the USD’s market valuation is likely to continue to impact USD/CAD’s movements.
Technical levels to watch for