USD/CAD pulls away from daily highs as USD comes under modest selling pressure
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USD/CAD pulls away from daily highs as USD comes under modest selling pressure

  • USD/CAD is edging lower in the early American session.
  • US Dollar Index retreats toward 93.00 on falling US T-bond yields.
  • Rising crude oil prices help CAD gather strength against its rivals.

The USD/CAD pair started to push lower in the early American session on Thursday and was last seen trading at 1.2572, where it was still up 0.1% on a daily basis.

USD struggles to find demand ahead of PMI data

After the US Department of Labor announced that the Initial Jobless Claims rose to 719,000 from 658,000 in the week ending March 27, the 10-year US Treasury bond yield extended its daily slide and weighed on the USD. Currently, the 10-year US T-bond yield is down 2.7% on the day and the US Dollar Index is losing 0.18% at 93.06.

On the other hand, crude oil prices gained traction as  Saudi Arabia’s energy minister Prince Abdulaziz bin Salman reiterated  at the 15th OPEC and non-OPEC Ministerial Meeting that they will maintain a cautious stance. As of writing, the barrel of West Texas Intermediate was up 2% at $60.60, providing a boost to commodity-sensitive CAD.

Later in the session, the IHS Markit will release March Manufacturing PMI reports for both the US and Canada. Furthermore, the ISM’s Manufacturing PMI and February Construction Spending data will be featured in the US economic docket as well.

In the meantime, Reuters reported that the findings of a recently conducted poll revealed that  the median forecast of more than 30 strategists was for USD/CAD to decline by 0.6% over the next three months to 1.2500 area.  

Technical levels to watch for


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