USD / CAD falls to fresh week lows near 1.2640

• USD / CAD came under renewed downward pressure in the US session.
• The US Dollar Index is back from the daily high it reached above 90.50.
• WTI is trading in negative territory near $ 52.50.

The USD / CAD pair gained traction in the early trading hours of the US session and rose above 1.2700, but then turned 180 degrees. At time of writing, the pair is trading at its lowest level in a week at 1.2642, shedding 0.45% daily.

The focus is on Powell’s speech and Biden’s stimulus plan

The USD market valuation appears to be the main driver for the USD / CAD movements on Thursday. The U.S. Dollar Index (DXY), which tracks the dollar’s performance against a basket of six major currencies, rose to 90.57 after the U.S. Department of Labor reported that initial jobless claims rose 181,000 to 795,000 last week.

However, with major Wall Street indices starting the day in positive territory, the USD lost its appeal and the DXY turned flat on the day at 90.35, causing the USD / CAD to reverse its direction.

Later in the day, FOMC President Jerome Powell, will deliver a speech on the economy and political prospects at an online event. In addition, the President-elect is expected Joe Biden reveal your coronavirus relief plan. Markets have already priced in information that the new aid will be worth around $ 2 trillion. However, a positive reaction in US Treasury yields could help the USD pick up steam and trigger a rally in the USD / CAD.

Meanwhile, the barril de West Texas Intermediate (WTI) is trading in negative territory around $ 52, helping USD / CAD limit its losses for now.

Technical levels