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
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.
