USD/CAD clings to small daily gains above 1.2500
- USD/CAD looks to snap a two-day losing streak.
- WTI continues to move sideways above $69 in the American session.
- Rising US Treasury bond yields help USD stay resilient against its rivals.
The USD/CAD pair edged slightly higher during the American trading hours and was last seen rising 0.1% on the day at 1.2520.
DXY stays calm following Wednesday's drop
Despite the modest rebound witnessed following a two-day decline, USD/CAD's movements remain limited on Thursday amid a lack of high-tier macroeconomic data releases and fundamental drivers. Moreover, crude oil prices trade in a relatively tight range and fail to provide a directional clue to the commodity-related loonie. Currently, the barrel of West Texas Intermediate (WTI) is posting small daily losses at $69.25.
On the other hand, the US Dollar Index, which closed in the negative territory on Wednesday, continues to move up and down between 92.90 and 93.00. The more-than-2% increase seen in the 10-year US Treasury bond yield seems to be helping the USD find demand.
Earlier in the day, the data from the US showed that the weekly Initial Jobless Claims declined by 12,000 375,000. Additionally, the Producer Price Index (PPI) rose to 7.8% on a yearly basis in July from 7.3% in June. Nevertheless, these readings were largely ignored by market participants.
On Friday, the University of Michigan's preliminary Consumer Sentiment Index for August will be featured in the US economic docket.
Technical levels to watch for
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.
