USD/CAD slips back below 1.2700 amid fresh US dollar selling

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  • USD/CAD turns south once again in tandem with the US dollar.
  • T-yields weakness and WTI’s pullback weighs on the spot.
  • US weekly jobless claims data, Biden and Powell’s speech in the spotlight.

USD/CAD has come under renewed selling pressure in Asia this Thursday, as it drops back below 1.2700 following a brief bounce in the early dealings.

The latest leg lower in the spot comes as the US dollar sees a fresh spurt of selling across its main peers, taking lead from the negative sentiment around the Treasury yields and minor gains in the S&P 500 futures.

The Treasury yields extended the drop on Wednesday after the US government bonds saw yet another strong demand in the auction.

Meanwhile, the broader market sentiment remains buoyed by the expectations that President-elect Joe Biden will announce a multitrillion-dollar stimulus proposal when he speaks on Friday at 0015GMT.

USD/CAD also remains weighed down by a brief pullback in WTI prices after correcting sharply from 11-month tops just shy of the $54 mark. WTI’s recovery attempts are boding well for the resource-linked loonie.

Attention now turns towards the US weekly jobless claims and the Fed Chief Jerome Powell’s speech due later in the NA session for fresh trading impulse. Biden’s speech will be the main driver in the coming days.

USD/CAD technical levels

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