OctaFX | OctaFX Forex Broker
Open trading account

USD/CAD extends daily slide to 1.2570 area as USD selloff continues

  • USD/CAD remains on track to snap two-day winning streak.
  • US Dollar Index is testing 92.00 in American session.
  • 10-year US Treasury bond yield is down more than 2%.

After spending the first half of the day in a narrow channel around 1.2600, the USD/CAD pair came under renewed bearish pressure and touched a daily low of 1.2563. As of writing, the pair was losing 0.28% on a daily basis at 1.2572.

USD selloff remains intact

The USD's market valuation remains the primary driver of USD/CAD's movements on Thursday. With the benchmark 10-year US Treasury bond yield losing more than 2% on the day, the US Dollar Index (DXY) slumped to its lowest level in more than two weeks at 91.99 and was last seen falling 0.42% on the day at 92.04.

The only data from the US showed that the weekly Initial Jobless Claims rose by 16,000 to 744,000 in the week ending April 3. This reading came in worst than analysts' estimate of 680,000 but was largely ignored by market participants.

While speaking at a conference organized by the International Monetary Fund (IMF), FOMC Chairman Jerome Powell reiterated that they see upward pressure on prices likely to be temporary this year. Powell further noted that they will continue to support the economy and didn't help the greenback to stage a recovery.

On the other hand, the barrel of West Texas Intermediate (WTI) continues to fluctuate in a tight range below $60 on Thursday, allowing USD/CAD to continue to react to movements in the DXY. 

On Friday, the Canadian labour market report and the Producer Price Index (PPI) data from the US will be looked upon for fresh impetus.

Technical levels to watch for


Gold Price Analysis: XAU/USD at highest in over a month amid dovish Powell comments

Spot gold (XAU/USD) prices hit their highest levels in over a month of just north of the 18 March $1755 high in recent trade and continue to hold in t
Read more Previous

EUR/USD bursts back above 1.1900 following dovish Powell commentary

EUR/USD is currently trading close to highs of the day around the 1.1900 level, the pair having managed to aggressively reclaim the big figure and jum
Read more Next
Start livechat