USD/CAD climbs above 1.2100 after FOMC Minutes

USD/CAD gained traction in the late American session.
US Dollar Index remains on track to snap four-day losing streak.
FOMC Minutes showed some policymakers are willing to discuss adjustments to asset purchases.

Eren Sengezer FXStreet

The USD/CAD pair pushed higher in the late American session and touched a daily top of 1.2132 fueled by the renewed USD strength. As of writing, the pair was up 0.56% on the day at 1.2130.

USD capitalizes on rising US T-bond yields

The FOMC's April 27-28 meeting minutes revealed on Wednesday some policymakers voiced that it would be appropriate to start discussing a plan for adjusting asset purchases in the upcoming meetings if the economy continued to make rapid progress. Additionally, the publication showed that some policymakers were worried the inflation increase could reach "unwelcome levels" before providing sufficient evidence for a policy reaction.

On the back of the FOMC's relatively hawkish tone, the benchmark 10-year US Treasury bond yield is up 3% on the day and the US Dollar Index is rising 0.5% at 90.22.

FOMC Minutes: Participants agreed economy is still far from Fed's goals.

Meanwhile, the barrel of West Texas Intermediate is losing 3.2% at $63.15, making it even more difficult for the commodity-sensitive loonie to show some resilience against its American counterpart.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.212
Today Daily Change	0.0054
Today Daily Change %	0.45
Today daily open	1.2066

Trends
Daily SMA20	1.2252
Daily SMA50	1.2427
Daily SMA100	1.2565
Daily SMA200	1.2831

Levels
Previous Daily High	1.2081
Previous Daily Low	1.2013
Previous Weekly High	1.2203
Previous Weekly Low	1.2046
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2039
Daily Fibonacci 61.8%	1.2055
Daily Pivot Point S1	1.2025
Daily Pivot Point S2	1.1985
Daily Pivot Point S3	1.1957
Daily Pivot Point R1	1.2094
Daily Pivot Point R2	1.2122
Daily Pivot Point R3	1.2162

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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