The US dollar has given back all its post-retail sales gains even with yields still near the highs of the day. US equities are also staging an impressive comeback with the Nasdaq trimming its decline to -0.5% from -1.5%.
USD/CAD has made a complete round trip.
USDCAD 10 mins
It’s not clear what is driving the turnaround but there’s some talk that Biden’s visit to Israel may lead to Israel abandoning plans to occupy Gaza. The market could also be listening to earnings calls from CEOs, including Bank of America that see a soft landing and a return to low inflation.