USD/CAD climbs above 1.2100 after FOMC Minutes
- USD/CAD gained traction in the late American session.
- US Dollar Index remains on track to snap four-day losing streak.
- FOMC Minutes showed some policymakers are willing to discuss adjustments to asset purchases.
The USD/CAD pair pushed higher in the late American session and touched a daily top of 1.2132 fueled by the renewed USD strength. As of writing, the pair was up 0.56% on the day at 1.2130.
USD capitalizes on rising US T-bond yields
The FOMC's April 27-28 meeting minutes revealed on Wednesday some policymakers voiced that it would be appropriate to start discussing a plan for adjusting asset purchases in the upcoming meetings if the economy continued to make rapid progress. Additionally, the publication showed that some policymakers were worried the inflation increase could reach "unwelcome levels" before providing sufficient evidence for a policy reaction.
On the back of the FOMC's relatively hawkish tone, the benchmark 10-year US Treasury bond yield is up 3% on the day and the US Dollar Index is rising 0.5% at 90.22.
FOMC Minutes: Participants agreed economy is still far from Fed's goals.
Meanwhile, the barrel of West Texas Intermediate is losing 3.2% at $63.15, making it even more difficult for the commodity-sensitive loonie to show some resilience against its American counterpart.
Technical levels to watch for