USD/CAD Intermarket: So far, downside limited despite oil rally and risk appetite

USD/CAD remains steady hovering near the 1.3000 area, consolidating modest losses. The pair was unaffected by the recent rally in crude oil prices and also despite the risk-on mode of Wall Street.

The Dow Jones reached fresh highs during the last three hours and is now up 1.15% while the Nasdaq gains 1.28%. Crude oil soared after inventory data and printed a fresh high above $49.00, gaining more than 2%. Despite these moves, USD/CAD continues to trade in a range between 1.3015 and 1.2975, as it has been the case since the European session.

The pair appears to be following government bond yields. The spread between the US and Canadian 10-year yield stabilized and both have been steady during the last hours, around 1.465% and 1.007% respectively .

The loonie is the worst performers among commodity currencies. Despite gaining versus the US dollar is falling against the Kiwi and the Aussie.