The USD/CAD pair dropped below 1.2500 for the first time in nearly three years on Thursday but staged a sharp rebound in the late American session.
As of writing, the pair was trading at 1.2584, rising 0.57% on a daily basis. With this latest upsurge, USD/CAD remains on track to snap its five-day losing streak.
Following the latest 7-year US Treasury note auction, the Treasury bond yields surged higher and provided a boost to the greenback. The US sold 7-year notes at 1.195%, compared to 0.754% in the previous auction. At the moment, the US Dollar Index is up 0.07% on the day at 90.24 and the benchmark 10-year T-bond yield is rising nearly 8% at 1.489%. On the other hand, the barrel of West Texas Intermediate (WTI) is trading in the negative territory a little above $63, making it difficult for the commodity-related CAD to show resilience against its American counterpart.