The Canadian dollar fell for a seventh straight session against its US counterpart on Thursday, marking its longest daily losing streak since January, as the gap between Canadian and US bond yields continued to widen.

The Canadian dollar weakened by 0.1% to C$1.3720 per US dollar, or 72.89 US cents, after touching its weakest level since April 16 at C$1.3737 during the session.

Kevin Ford, FX and macro strategist at Convera, said the rise in USD/CAD to a four-week high was mainly driven by the “relative momentum divergence” between the two economies.

He added that hotter-than-expected US inflation data reinforced market bets that US interest rates will remain elevated for longer, while Canada lacked strong economic data this week capable of offsetting the impact of last Friday’s weak employment figures.

The US dollar index continued to strengthen against a basket of major currencies after economic data supported expectations that the Federal Reserve will not cut interest rates this year.

The spread between US and Canadian two-year government bond yields widened to around 105 basis points in favor of US Treasuries, the largest gap since January 22, boosting the attractiveness of the US dollar as the higher-yielding currency.

Data released Friday showed the Canadian economy lost 17,700 jobs in April, while the unemployment rate rose to a six-month high of 6.9%, signaling continued weakness in the labor market amid ongoing trade uncertainty.

This uncertainty also weighed on Canada’s housing market, as home sales rose only slightly by 0.7% in April compared with March following a weak start to the month, while prices edged lower, according to data released Thursday by the Canadian Real Estate Association.

Meanwhile, oil prices — one of Canada’s key exports — provided some support to the Canadian dollar, rising around 0.6% to $101.65 per barrel.

Canadian government bond yields declined across the curve, with the 10-year yield falling 4 basis points to 3.532%, trading near the midpoint of its range since the beginning of the month.

The S&P 500 and Nasdaq indexes reached fresh record highs on Thursday, supported by gains in Nvidia shares, while investors monitored economic data and developments from the high-stakes summit between the United States and China.

Nvidia shares rose about 3%, lifting the company’s market value to roughly $5.6 trillion, after Reuters reported, citing sources, that the United States had allowed around 10 Chinese companies to purchase the company’s H200 AI chip, its second most powerful processor.

At the same time, Cisco shares surged about 14.7% to a record high after the networking equipment company announced plans to cut nearly 4,000 jobs as part of a restructuring plan, while also raising its annual revenue forecast due to stronger demand from hyperscale computing companies.

The latest gains in technology stocks, particularly semiconductor companies, pushed US equities to new record levels despite ongoing concerns surrounding the Middle East war and rising inflation driven by higher oil prices.

Data showed US retail sales rose 0.5% in April, in line with expectations, although part of the increase was likely driven by higher prices as the Iran war pushed up energy and essential goods costs.

David Russell, head of global market strategy at TradeStation, said the US consumer is not in recession but is also no longer driving economic growth, noting that elevated inflation, tariffs, and demographic changes have weakened retail spending as a growth engine.

He added that current retail data gives the Federal Reserve no reason to cut interest rates, keeping the bias toward higher rates intact, while noting that the consumer remains resilient enough to rule out near-term easing.

Additional data also showed a moderate rise in weekly jobless claims, suggesting the labor market remains relatively stable.

By 9:54 a.m. Eastern Time, the Dow Jones Industrial Average had gained around 270 points, or 0.54%, to 49,963 points. The S&P 500 rose 0.38% to 7,472 points, while the Nasdaq advanced 0.35% to 26,495 points.

Nine of the 11 major sectors within the S&P 500 traded higher, led by the technology sector, which gained around 1%.

On the geopolitical front, Chinese President Xi Jinping told US President Donald Trump at the start of the two-day summit that trade talks were making progress, but warned that tensions over Taiwan could push relations onto a dangerous path and potentially lead to conflict.

Trump’s visit also comes amid the ongoing war with Iran, with a White House official saying the leaders of the world’s two largest economies agreed on the importance of keeping the Strait of Hormuz open and preventing Iran from obtaining nuclear weapons.

The S&P 500 and Nasdaq had already posted fresh record closing highs on Wednesday, extending the recent rally.

Stronger-than-expected inflation data this week, both for consumer and producer prices, also reinforced expectations that the Federal Reserve will keep monetary policy tighter for longer.

Traders are now pricing in more than a 28% probability of a quarter-point rate hike by year-end, up from 20.7% a week ago, according to CME Group’s FedWatch tool.

Bitcoin failed to hold above the $80,500 support zone, extending its negative movement and slipping below the $80,000 level, with additional losses pushing the cryptocurrency under $79,500.

Bitcoin dropped below $79,000, hitting a low at $78,720 before beginning to trade within a narrow range to consolidate losses. The price also posted a slight rebound above the 23.6% Fibonacci retracement level of the downward move from the $81,250 high to the $78,720 low.

Bitcoin is currently trading below the $80,500 level and beneath the 100-hour simple moving average, reflecting continued short-term selling pressure.

If the price manages to stabilize above the $79,000 level, it could attempt another upward move. The first immediate resistance appears near the $80,000 level, which also aligns with the 50% Fibonacci retracement level of the latest downward move.

The first major resistance stands near $80,500, while a bearish trendline is forming on the hourly chart with resistance near $80,700 for the BTC/USD pair.

If the price closes above the $80,700 level, it could open the door for further gains toward the $81,200 zone, while additional upside momentum may push the price toward $82,000, with the next resistance near $82,500.

Further downside possible

On the other hand, if Bitcoin fails to break above the $80,500 resistance zone, it could start another downward wave. Immediate support is located near the $79,200 level.

The first major support stands at $78,800, followed by another important support near $78,000. If selling pressure continues, the price could decline toward the $76,200 area in the near term.

The $75,500 level remains the key major support for now, as a break below it could make a short-term recovery significantly more difficult for Bitcoin.

Oil prices stabilized on Thursday after giving up part of their earlier gains, following Iranian media reports stating that around 30 vessels had crossed the Strait of Hormuz over the past several hours, while Iran’s semi-official Fars News Agency cited a source saying Tehran had begun allowing some Chinese ships to pass through the strait.

At the same time, the White House announced that US President Donald Trump and Chinese President Xi Jinping agreed during their meeting on the need to keep the Strait of Hormuz open to ensure the free flow of energy, while Xi said that “China’s rejuvenation” and the slogan “Make America Great Again” could move forward side by side.

After Brent crude touched a session high of $107.13 per barrel earlier in the day, futures steadied at $105.63 by 11:00 GMT, while US West Texas Intermediate crude rose by one cent to $101.03 per barrel.

Both benchmarks had fallen on Wednesday amid investor concerns over the possibility of further US interest rate hikes as fuel prices continue rising and adding pressure to inflation. Brent lost more than $2 per barrel, while US crude fell by more than $1.

According to the White House, Xi expressed interest in purchasing more US oil in an effort to reduce China’s dependence on the Strait of Hormuz. However, China, which was not previously a major buyer of US crude, has not imported any shipments since May 2025 due to 20% tariffs imposed during the trade war.

The Strait of Hormuz remains one of the world’s most critical energy corridors and has faced major disruptions since the outbreak of the war with Iran in late February.

Meanwhile, Iran appears to have strengthened its control over the strait through arrangements with Iraq and Pakistan for shipping oil and liquefied natural gas from the region.

Before the Fars report, a giant Chinese tanker carrying two million barrels of Iraqi crude successfully crossed the strait on Wednesday after remaining stranded in the Gulf for more than two months.

Shipping data from LSEG also showed that a Panama-flagged tanker operated by Japanese refining group Eneos managed to pass through the strait, marking the second known case of a Japan-linked vessel successfully making the crossing.

The International Energy Agency warned on Wednesday that global oil supplies will remain below demand this year as inventories continue declining at an unprecedented pace.

In the United States, Energy Information Administration data showed crude oil inventories fell by 4.3 million barrels to 452.9 million barrels during the week ending May 8, driven by stronger exports, despite an unexpected rise in distillate inventories that contrasted with market expectations for a decline.