- The USD / CAD was under strong downward pressure in the American session.
- WTI is trading above $ 70, increasing nearly 6% on the day.
- The US Dollar Index is sloping lower as US stocks extend their rally.
After trading in a relatively tight range around 1.2700 during the first half of the day, the USD / CAD pair came under heavy downward pressure and fell to 1.2523 before entering a consolidation phase. At time of writing, the pair was down nearly 1%, or 120 pips, on the day at 1.2555.
WTI recovers $ 70 on Wednesday
The sharp spike in crude oil prices provided a boost to the CAD during US business hours. Although the weekly report from the US Energy Information Administration (EIA) showed crude oil stocks increased by 2.1 million barrels, a barrel of West Texas Intermediate (WTI) retained its bullish momentum supported by risk flows. . At the moment, WTI is up 5.9% on the day at $ 70.30.
On the other hand, renewed USD weakness put additional weight on USD / CAD’s shoulders. With the main Wall Street indices opening into positive territory, the dollar lost steam and the US dollar index (DXY) turned negative on the day. Currently, the DXY is down 0.2% and is still on track to break a four-day winning streak.
There will be no release of high-level data from Canada on Thursday. The weekly report of initial jobless claims from the US Department of Labor will be placed on the US economic agenda. However, the perception of risk and its impact on oil prices is likely to remain elusive. main driver of USD / CAD movements in the short term.