USD/CAD recovery eyes 1.2600 on softer oil prices, risk-aversion ahead of NATO summit By anilpanchal7 USDCAD Oil RiskAppetite YieldCurve Ukraine
WTI crude oil prices ease from two-week top as sour sentiment underpins USD strength.snaps seven-day downtrend while bouncing off late January’s levels during Thursday’s Asian session. That said, the Loonie pair picks up bids to refresh intraday high near 1.2580 by the press time.
The quote’s latest rebound could be linked to the market’s risk-off mood that underpins the US dollar run-up. Also supporting the pair buyers is the firmer US Treasury yields and a pullback in prices of Canada’s main export item, namely WTI crudeIt’s worth noting that the WTI crude oil renews intraday low to $112.65 by the press time, down 0.73% on the day whereas the US 10-year Treasury yields rise 1.5 basis points near 2.
Recently, the UK and the US readiness to send more help to Ukraine, despite Russian handling of a list of diplomats termed as ‘persona non grata’ to the US embassy, weigh on. On the same line is news that US Senator John Cornyn said he met with US Treasury Secretary Janet Yellen to discuss Russian gold sanctions. Additionally, Russian President Vladimir Putin’s readiness to ask for oil payment in ruble to ‘unfriendly’ nations and covid woes in China, as well as Europe, also challenges the mood.
while US President Biden’s meeting with the North Atlantic Treaty Organization allies in Europe will be crucial as well. Forecasts suggest that the US Markit Manufacturing PMI may weaken to 56.3 from 57.3 previous readouts whereas the Services PMI seemed to have dropped to 56.0 from 56.5. Further, the US Durable Goods Orders growth for February is likely turned negative with -0.5% forecasts versus 1.6% prior.Recovery remains elusive below a six-month-old previous support line, around 1.