An uptick in oil prices underpinned the loonie and capped the upside amid renewed USD selling.The USD/CAD pair
The pair attracted some buying on Thursday and built on the overnight bounce from the 1.2665 area, or the weekly low, though a combination of factors capped any meaningful upside. Intensifying the Russia-Ukraine conflict pushedhigher and underpinned the commodity-linked loonie. This, along with the emergence of fresh US dollar selling, acted as a headwind for the USD/CAD pair.
On the other hand, the USD struggled to preserve its modest intraday gains and met with a fresh supply amid retreating US Treasury bond yields. Moreover, the risk sentiment recovered a bit after the latest satellite image showed that Russia has pulled back some equipment from the Ukraine border. This, along with less hawkish FOMC minutes released on Wednesday, weighed on the safe-haven greenback.
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