- USD / CAD rallies above 1.3100 on Thursday.
- WTI is trading in negative territory near the $ 41 level.
- The US Dollar DXY Index bounces above 92.50 as sentiment worsens.
After falling to a weekly low at 1.3032 on Wednesday, The USD / CAD pair has turned higher on Thursday as falling crude prices make it difficult for the Canadian dollar to, sensitive to raw material prices, find demand. At the time of writing, the pair is up 0.24% on the day, trading at 1.3112.
WTI fails to stay above $ 42
The optimism for a recovery in global energy demand, amid positive developments in the coronavirus vaccine and hopes for further cuts in the production of oil, provided a boost to crude prices during the first half of the week. However, a barrel of West Texas Intermediate WTI, which rose to the $ 42.50 area on Wednesday, appears to have entered a consolidation phase. At the time of writing it is losing almost 1% on the day at $ 41.15.
Meanwhile, the worsening in market sentiment, reflected by the sharp falls observed in the main European stock indices, is helping the US dollar to strengthen as a safe haven against its rivals. At the moment, the US Dollar DXY Index is up almost 0.4% on the day at 92.66.
Later in the day, weekly data on Initial Unemployment Claims from the U.S. Department of Labor and the Federal Reserve Bank of Philadelphia Manufacturing Index they will focus the attention of investors to gain new momentum. On the other hand, ADP’s jobs report stands out on the Canadian economic calendar.
Investors will also be watching Wall Street. S&P 500 futures are down 0.3% on the day and the USD could retain its bullish momentum in the second half of the day if US stocks take heavy losses.
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