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  • USD/CAD rose to fresh weekly high above 1.2100 on Wednesday.
  • WTI trades little changed on the day near $66.
  • US Dollar Index remains on track to close above 90.00.

The USD/CAD pair broke out of its consolidation phase during the early trading hours of the American session and climbed to a weekly high of 1.2125 before going into a consolidation phase. As of writing, the pair was up 0.45% on the day at 1.2115.

USD capitalizes on rising T-bond yields

Earlier in the day, the selling pressure surrounding crude oil prices made it difficult for the loonie to find demand. Although the barrel of West Texas Intermediate (WTI), which dropped to a daily low of $65.25, managed to erase its losses, it failed to help the CAD find demand. At the moment, WTI is virtually unchanged on the day at $66.15 supported by the 1.6 million barrel drop reported in US crude oil inventories last week.  

Meanwhile, the rebound witnessed in the US Treasury bond yield helped the USD gather strength against its rivals in the absence of high-tier macroeconomic data releases and fundamental drivers. Currently, the benchmark 10-year US T-bond yield is up 1% on the day and the US Dollar Index is rising 0.45% at 90.06.

There won’t be any macroeconomic data releases from Canada on Thursday. The US economic docket will feature the US Department of Labor’s weekly Initial Jobless Claims data, the US Bureau of Economic Analysis’ second estimate of the first-quarter GDP growth and April Durable Goods orders figures.

Technical levels to watch for