- USD / CAD is moving sideways in a relatively tight range on Thursday.
- Crude prices are falling for the second day in a row.
- The US Dollar Index remains quiet above 94.00 ahead of the initial jobless claims data.
The pair USD / CAD erased its daily gains and closed virtually unchanged at 1.2587 on Wednesday. Although the pair managed to rise towards 1.2600 in the first European session on Thursday, it appears to be struggling to gain bullish momentum. At the time of writing, the USD / CAD it was flat on the day at 1.2585.
WTI drops to $ 76 after Wednesday’s slide
Falling crude oil prices amid less concern about energy inflation is making it difficult for the CAD to strengthen against its rivals. A barrel of West Texas Intermediate (WTI), which lost more than 2.5% on Wednesday, is currently trading near $ 76, down 1% on the day.
On the other hand, the improvement in the market mood does not allow the dollar to find demand and limits the rise of the USD / CAD. Reflecting the positive risk environment, major European stock indices rose more than 1% and S&P futures rose 0.65%. Meanwhile, the US dollar index records small daily losses at 94.17.
Later in the session, the US Department of Labor will release its weekly data on initial jobless claims. However, investors are likely to pay little or no attention to this report ahead of Friday’s critical September employment report. Meanwhile, market participants will keep a close eye on US stocks and a decisive rally in the major Wall Street indices could put additional weight on the shoulders of the dollar as a safe haven in the second half of the day.