• USD/CAD drops to near 1.3450 as US Dollar retreats ahead of the US core PCE inflation data.
• The BoC kept interest rates unchanged at 5%.
• Oil prices fall slightly but remains broadly upbeat amid supply chain disruptions due to Red Sea crisis.

The USD/CAD pair drops further to near 1.3450 in the European session. The Loonie asset faces a sell-off as the US Dollar Index (DXY) has surrendered intraday gains. The USD Index faces offers while attempting to recapture monthly high of 103.82.

Losses posted by the S&P500 futures in the Asian session are now in the European session, indicating some recovery in the risk-appetite of the market participants. 10-year US Treasury yields have dropped to near 4.10%.