- The US dollar falls across the board, stocks rise sharply.
- WTI bounces to $ 78.00, up 0.70%.
- USD / CAD is heading towards the lowest close in a month ahead of key jobs data.
The USD / CAD It broke below 1.2560 and fell to 1.2540, reaching the lowest level since September 7. It remains near the lows with a bearish intraday bias, favored by a weaker dollar and higher oil prices.
On Wall Street, the Dow Jones is up 1.40% and the Nasdaq 1.59%. The improvement in market sentiment weighs on the US dollar. The decline in energy prices in Europe and the agreement between Democrats and Republicans in the United States Congress on the debt ceiling contribute to the positive tone in financial markets.
Economic data also helped boost equities. Initial US jobless claims fell more than expected to 328,000. In Canada, ivey’s PMI unexpectedly rose in September to 70-4 from 66. On Friday, critical economic data will be released in the US and Canada with its employment reports.
Another factor keeping USD / CAD under pressure on Thursday is crude oil. WTI rallied sharply down from $ 75.00 to $ 78.00; has risen 0.72%.
From a technical perspective, the bearish bias will likely remain strong as long as USD / CAD remains below 1.2560. The 200-day moving average emerges at 1.2510 and then at 1.2490, the September low. A rally above 1.2600 should ease the pressure.