- The USD / CAD extended its decline after falling below 1.2700.
- The US dollar index continues to decline towards 90.50.
- WTI consolidated weekly gains, trading above $ 61 ahead of EIA data.
The pair USD / CAD It advanced to a five-day high of 1.2746 on Wednesday, but was unable to preserve its bullish momentum. At time of writing, the pair is trading at fresh daily lows at 1.2666, shedding 0.25% on the day.
DXY loses traction on Thursday
On Wednesday, the broad-based USD strength gave USD / CAD a boost. Supported by strong US retail sales data and safe-haven flows, the US dollar index rose above 91.00 on Wednesday.
Ahead of weekly data from initial jobless claims from the US Department of Labor, the US Dollar Index (DXY) is down 0.38% on the day at 90.60. However, major stock indices are still on track to open the day in negative territory with S&P 500 futures shedding nearly 0.5%. If the market’s mood deteriorates in the second half of the day, the USD could regain its strength.
On the other hand, a barrel of West Texas Intermediate (WTI), which reached its highest level in more than a year at $ 62.25 amid interruptions in production in the United States, is in a phase of consolidation above the $ 61 on Thursday. Later in the session, crude oil stock change data from the US Energy Information Administration (EIA) will be the next potential catalyst for crude oil prices. Another higher leg on the WTI is likely to help the Commodity-related Canadian Dollar remain resilient against its major rivals.
Technical levels
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