After spending the first half of the day in a narrow channel around 1.2600, the USD/CAD pair came under renewed bearish pressure and touched a daily low of 1.2563. As of writing, the pair was losing 0.28% on a daily basis at 1.2572.
The USD’s market valuation remains the primary driver of USD/CAD’s movements on Thursday. With the benchmark 10-year US Treasury bond yield losing more than 2% on the day, the US Dollar Index (DXY) slumped to its lowest level in more than two weeks at 91.99 and was last seen falling 0.42% on the day at 92.04.
The only data from the US showed that the weekly Initial Jobless Claims rose by 16,000 to 744,000 in the week ending April 3. This reading came in worst than analysts’ estimate of 680,000 but was largely ignored by market participants.
While speaking at a conference organized by the International Monetary Fund (IMF), FOMC Chairman Jerome Powell reiterated that they see upward pressure on prices likely to be temporary this year. Powell further noted that they will continue to support the economy and didn’t help the greenback to stage a recovery.
On the other hand, the barrel of West Texas Intermediate (WTI) continues to fluctuate in a tight range below $60 on Thursday, allowing USD/CAD to continue to react to movements in the DXY.
On Friday, the Canadian labour market report and the Producer Price Index (PPI) data from the US will be looked upon for fresh impetus.