- USD/CAD has attempted a recovery after dropping below 1.3500 as the risk-off mood has regained traction.
- Firmer oil prices led by growing supply worries as Russia bans oil supply have supported the Canadian Dollar.
- The 10-year US Treasury yields have jumped to near 3.85% amid the risk aversion theme.
The USD/CAD pair has sensed buying interest after dropping to near 1.3500 in the early Asian session. The Loonie asset has picked strength as the risk-aversion theme is gaining traction amid volatility in a festive week. The major has shown signs of reversal after displaying a perpendicular downside move on Tuesday as firmer oil prices supported the Canadian Dollar.
The risk profile is highly obscure amid the unavailability of solid triggers for decisive moves in the currency market. Also, easing lockdown restrictions for inbound travelers in China failed to uplift the market mood. S&P500 remained under pressure on Tuesday as tech-savvy stocks faced immense heat. The US Dollar Index (DXY) has turned sideways around 103.80 after failing to cross the crucial resistance of 104.00.
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