- USD/CAD gained traction in the early American session.
- US Dollar Index pared early losses and turned flat near 93.00.
- Rising crude oil prices help CAD stay resilient against its rivals.
The USD/CAD pair spent the majority of the day moving sideways below 1.3100 but started to edge higher in the early trading hours of the American session. After touching a fresh weekly high of 1.3149, the pair retreated slightly and was last seen gaining 0.55% on the day at 1.3135.
DXY rebounds to 93.00 area
Earlier in the day, the data from the US showed that Initial Jobless Claims declined by 48,000 to 709,000 last week. Additionally, the Consumer Price Index (CPI) stayed unchanged in October and missed the market expectation of +0.2%. Nevertheless, the market reaction to these readings was largely muted.
Meanwhile, the Dow Jones Industrial Average and the S&P 500 both opened in the negative territory on Thursday and pointed out to a negative shift in market sentiment.
Supported by risk-off flows, the US Dollar Index (DXY) erased its daily losses and turned flat on the day near 93.00, helping USD/CAD push higher.
On the other hand, the barrel of West Texas Intermediate (WTI) is up 1.7% on the day above $42, allowing the commodity-related CAD to stay resilient against its rivals and limiting USD/CAD’s upside for the time being.
Later in the session, FOMC Chairman Jerome Powell will be delivering a speech at the European Central Bank Forum on Central Banking.
Technical levels to watch for
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