- WTI stays relatively quiet following Wednesday’s sharp rebound.
- US Dollar Index climbs to fresh multi-year highs above 99.90.
- Coming up: ADP Employment Change from Canada and Philly Fed Manufacturing Survey from US.
The USD/CAD pair registered its lowest daily close of February at 1.3219 on Wednesday as the decisive rebound seen in crude oil prices helped the commodity-related CAD preserve its strength. However, with the oil recovery losing its momentum and the USD continuing to outperform its major rivals on Thursday, the pair erased the previous day’s its losses and was last seen trading at 1.3255, adding 0.3% on a daily basis.
Oil recovery helps CAD find demand
Easing worries over the coronavirus outbreak having a significant negative impact on the global energy demand provided a boost to crude oil prices. Moreover, the recovery momentum remained intact with Venezuela struggling to supply the oil market amid new US sanctions and the barrel of West Texas Intermediate (WTI) gained 2.75% on Wednesday. As of writing, the WTI was posting small daily gains near $53.70.
In the meantime, the US Dollar Index (DXY) continues to push higher relentlessly as the selling pressure surrounding major European currencies and the JPY allow the greenback to capture the market demand. At the moment, the DXY is at its highest level since April 2017 at 99.85, adding 0.25% on the day. Earlier in the day, the index rose all the way up to 99.91 before retreating slightly.
In the second half of the day, the weekly Jobless Claims data and the Philly Fed Manufacturing Survey from the US will be looked upon for fresh impetus. The Canadian economic docket, on the other hand, will feature the ADP Employment Change report.
Technical levels to watch for
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