- USD / CAD is trading little changed around 1.3000 on Thursday.
- WTI makes a technical correction after a six-day winning streak.
- The US Dollar Index is holding on to small gains above 92.00.
The pair USD / CAD It is moving into an extremely tight trading range on Thursday and remains on track to close flat around 1.3000 amid the Thanksgiving holiday in the US.
WTI turns south on Thursday
Earlier in the week, the sharp rally in crude oil prices helped the commodity-related Canadian dollar gain traction against its rivals. On Wednesday, a barrel of West Texas Intermediate (WTI) touched its highest level since early March at $ 46.23 supported by renewed optimism for a convincing rebound in global energy demand.
In the absence of significant fundamental drivers on Thursday, WTI appears to have started to pull back on its six-day rally and was last seen shedding 1.3% on the day at $ 45.25. However, the decline in WTI does not appear to have a negative impact on CAD so far.
On the other hand, the dollar, which struggled to find demand during the first half of the week, remains relatively resilient against its peers on Thursday. However, the lack of release of macroeconomic data and poor trading conditions suggest that the US Dollar Index (DXY) is making a technical correction. At the moment, the DXY is up 0.12% on the day at 92.10.
On Friday, the stock and bond markets in the US will reopen but close early and market action is expected to remain subdued.
Technical levels
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