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The USD/CAD is trimming some of Wednesday’s losses, down by 0.05% as COVID-19 worries ease, as studies have shown that leads to milder symptoms that could be treated outside the hospital.
The USD/CAD has fallen during the New York session, trading at 1.2809. Investors’ mood is mixed, as US equity indices fluctuate between gainers and losers. In the last couple of weeks, Omicron’s worries eased, as evidence that although it is highly infectious, it leads to milder symptoms, despite breaking the daily record of infections on Tuesday, topping around 1.449 Million worldwide.
The US crude oil benchmark, WTI, retreats from $77.20 monthly highs down to $75.72, a headwind for the commodity-oil-linked Canadian dollar.
The uptick of the USD/CAD pair in the last hour is courtesy of the slide in crude oil prices, which caused an uptick of 30-pips in the pair, despite broad US dollar weakness across the board. Further, the US Dollar Index, which measures the greenback’s performance against a basket of six currencies, slides down to 95.98, for a 0.24% loss.
In the bond market, US long-maturity Treasury yields advance, with the 10s, the 20s, and 30s, over-performing the shot-term of the yield curve, rising to 1.536%, 1.9875%, and 1.953%, respectively.
In the overnight session, the USD/CAD remained subdued within a 1.2800-35 range, dropping towards 1.2788 near the S1 daily pivot, the first line of defense for USD bulls, who entered the market, lifting prices back above the 1.2800 figure.
