USD/CAD jumps to fresh daily highs above 1.2580 on surging US T-bond yields


  • USD/CAD remains on track to snap five-day losing streak.
  • US Dollar Index rebounds above 90.00 in late American session.
  • The 10-year US T-bond yield is rising nearly 8%. 

The USD/CAD pair dropped below 1.2500 for the first time in nearly three years on Thursday but staged a sharp rebound in the late American session. As of writing, the pair was trading at 1.2584, rising 0.57% on a daily basis. With this latest upsurge, USD/CAD remains on track to snap its five-day losing streak.

DXY advances beyond 90.00

Following the latest 7-year US Treasury note auction, the Treasury bond yields surged higher and provided a boost to the greenback. The US sold 7-year notes at 1.195%, compared to 0.754% in the previous auction. At the moment, the US Dollar Index is up 0.07% on the day at 90.24 and the benchmark 10-year T-bond yield is rising nearly 8% at 1.489%.

On the other hand, the barrel of West Texas Intermediate (WTI) is trading in the negative territory a little above $63, making it difficult for the commodity-related CAD to show resilience against its American counterpart.

Earlier in the day, the data from the US showed that the Real Gross Domestic Product (GDP) expanded at an annual rate of 4.1% (second estimate) in the fourth quarter as expected. Additionally, the Department of Labor reported that the weekly Initial Jobless Claims declined to 730K last week and came in much better than the market expectation of 838K.

Nevertheless, these data failed to provide a boost to risk sentiment and the S&P 500 Index is losing nearly 2% on the day. 

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2564
Today Daily Change 0.0053
Today Daily Change % 0.42
Today daily open 1.2511
 
Trends
Daily SMA20 1.271
Daily SMA50 1.2734
Daily SMA100 1.2891
Daily SMA200 1.315
 
Levels
Previous Daily High 1.2598
Previous Daily Low 1.251
Previous Weekly High 1.2746
Previous Weekly Low 1.2594
Previous Monthly High 1.2881
Previous Monthly Low 1.259
Daily Fibonacci 38.2% 1.2544
Daily Fibonacci 61.8% 1.2565
Daily Pivot Point S1 1.2481
Daily Pivot Point S2 1.2452
Daily Pivot Point S3 1.2393
Daily Pivot Point R1 1.2569
Daily Pivot Point R2 1.2628
Daily Pivot Point R3 1.2657

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD attempts recovery above 1.1950 as US dollar bounce fizzles

EUR/USD is attempting a recovery above 1.1950 ahead of the European open, as the US dollar’s rebound falters amid persistent weakness in the Treasury yields. Easing concerns over EU's covid vaccines rollout and dovish Fed expectations underpin the spot.

EUR/USD News

GBP/USD recovers to 1.3850 as UK’s optimism offsets USD bounce

GBP/USD recovers to 1.3850, picking up fresh bids heading into the London open. The cheers the UK’s advantage of faster vaccinations and unlock guidelines to shrug off the US dollar’s bounce off late the lowest since late March.

GBP/USD News

Gold’s path of least resistance appears north, $1798 in sight

Gold is consolidating last week’s rally to two-month highs of $1784, in the wake of the persistent weakness in the US Treasury yields across the curve.  However, gold bulls remain motivated, as China steps up bullion imports.

Gold News

Bitcoin network hash rate drop may not have caused BTC price crash

China’s prominent regions for Bitcoin mining have suffered an electrical grid blackout, causing Bitcoin’s hash rate to decline. Bitcoin price crashed over the weekend, coinciding with the drop of the network’s hash rate.

Read more

S&P 500 Week Ahead: Banks beat the street, COIN booms as funds flow to ETFs

Equity markets continue to remain bolstered from all sides as the macro environment produces strong numbers, earnings continue to smash estimates and inflation concerns take a back seat. Earnings season switches from bank stocks to reopening plays.

Read more

Forex MAJORS

Cryptocurrencies

Signatures