USD/CAD breaks below 1.3100, hits day lows at 1.3050 area
|- USD/CAD, capped at 1.3120, retreats to 1.3050 area.
- Lower US T-Bond yields weigh on the US dollar.
The greenback has accelerated its reversal from intra-day highs at 1.3120, returning below 1.3100 during the US session before reaching 1.3050 and turn negative on daily charts.
The USD loses steam amid lower US T-Bond yields
Downbeat news about the ever-growing COVID-19 cases, with the US reporting a 250,000 death toll on Wednesday, offset the previous days’ optimism about the progress of diverse vaccine trials. The sourer market sentiment fuelled a USD recovery on early trading in detriment of risk-sensitive currencies like the CAD.
Dollar’s rally, however, has been short-lived, weighed by the decline on US Treasury Bond yields. The US Dollar Index, that had appreciated about 0.3% during the Asian and early European sessions, pulled back afterwards, to complete a six-day losing streak.
On the macroeconomic front, the Canadian ADP report revealed a 79,500 decline on employment in October, with trade, transportation and the utility sector leading jobs’ destruction. The Canadian dollar edged down after these figures were released, to resume its recovery shortly afterwards.
In the US, the economic calendar has shown mixed figures. While the Weekly Jobless Claims increased beyond expectations on the week of November 13, home sales and a manufacturing gauge of the Philadelphia area have shown better than expected readings. The impact on the US dollar, however, has been minimal.
Technical levels to watch
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