The US dollar trimmed some of its losses yesterday, especially against the Japanese yen, which recorded its biggest daily decline in eight months, following news that China is ready to slow down or stop the pace of its purchase of US Treasury bonds.
Yesterday, Chinese officials recommended the move after reviewing foreign exchange holdings in China, prompting the 10-year US bond yield to reach its highest level since March. The US dollar is down against the yen by 1.1% yesterday, the largest since May, before rising and shrinking some of its losses today.
On the other hand, the Euro stabilized against the US Dollar at levels of 1.1950/80. The Canadian dollar has been weakened by concerns about the US withdrawal from the NAFTA, reducing expectations that the Bank of Canada will raise rates when it meets next week.
There is growing Canadian conviction that Trump may soon announce the United States' intention to withdraw from the treaty. The USDCAD rose from its weekly low of 1.2354 after achieving the target of the triple-top pattern on the daily chart to currently reach the 1.2560 levels.
