- USD/CAD extended its slide after falling below 1.2700.
- US Dollar Index continues to edge lower toward 90.50.
- WTI consolidate weekly gains, trades above $61 ahead of EIA data.
The USD/CAD pair advanced to a five-day high of 1.2746 on Wednesday but failed to preserve its bullish momentum. As of writing, the pair was trading at fresh daily lows at 1.2666, losing 0.25% on a daily basis.
DXY loses its traction on Thursday
On Wednesday, the broad-based USD strength provided a boost to USD/CAD. Supported by the strong Retail Sales data from the US and safe-haven flows, the US Dollar Index climbed above 91.00 on Wednesday.
Ahead of the US Department of Labor’s weekly Initial Jobless Claims data, the US Dollar Index (DXY) is down 0.38% on the day at 90.60. However, major equity indexes remain on track to open the day in the negative territory with the S&P 500 Futures losing nearly 0.5%. If the market mood sours in the second half of the day, the USD could regain its strength.
On the other hand, the barrel of West Texas Intermediate (WTI), which touched its highest level in more than a year at $62.25 amid production disruptions in the US, is in a consolidation phase above $61 on Thursday. Later in the session, the US Energy Information Administration’s (EIA) Crude Oil Stocks Change data will be the next potential catalyst for crude oil prices. Another leg higher in WTI is likely to help the commodity-related loonie stay resilient against its major rivals.
Finally, the Canadian economic docket will feature ADP Employment Change and Housing Price Index data.
Technical levels to watch for
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