Loonie Loses Ground Amid Rising Yields and Strong Oil Prices

The Canadian Dollar traded lower yesterday due to rising US Treasury yields and increasing demand for the US dollar. The 10-year Treasury yield climbed from 4.78% on Tuesday to 4.861%, undermining the Loonie. This move came despite US Treasury Secretary Scott Bessent's effort to push long-term borrowing costs lower by tripling the size of US long-term debt issuance from $2.0 billion to $6.0 billion.

WTI oil prices continued to climb, rising from $95.39 to $97.83 and are currently at $97.17 in NY trading today. Meanwhile, S&P 500 futures were little changed, the 10-year Treasury yield stood at 4.867%, and the dollar index is at 98.83.

In other markets, EURUSD idled in a 1.1620-1.1642 band as traders await this morning's ECB decision, while GBPUSD traded lower due to rising US Treasury yields and the spike in Brent crude to $102.72 overnight. AUDUSD also traded lower, but is supported by surging oil prices that more than offset the extra cost of importing crude.