USD/CAD jumps toward 1.3500 as Dollar soars

• US Dollar rises sharply amid risk aversion and banking concerns. 
• US data adds more evidence of slowing inflation and easing labor market. 
• USD/CAD is having the biggest daily gain in a month, extending weekly gains. 

The USD/CAD broke above 1.3415 and jumped to 1.3486, hitting the highest level since last Friday. This was supported by a stronger US Dollar across the board, which gained momentum after Wall Street's opening bell. 

Equity prices are down, with PacWest Bancorp falling by 20%. US yields are sharply lower. Crude oil prices are falling by more than 1.5%.

Data from the US showed the Producer Price Index (PPI) rose 0.2% in April, below the 0.3% of market consensus and the annual rate dropped from 2.7% in March to 2.3%. The Labor Department also informed that Initial Jobless Claims rose to 264,000, surpassing expectations and reaching the highest level since October 2021.

The USD/CAD is having the biggest daily gain in months. The next resistance stands at 1.3500 followed by 1.3525. On the flip side support might be seen at 1.3420 and 1.3405. The outlook for the American session favors the Greenback as long as price remain above 1.3400. 

The Loonie outperformed NZD and AUD during the last hour, amid risk appetite. 

Technical levels