- USD/CAD extended its daily climb during the American trading hours.
- US Dollar Index rose above 91.50 after retreating earlier in the day.
- WTI trades in a relatively tight range around $56.
The USD/CAD pair dropped below 1.2800 during the European trading hours but regained its traction in the second half of the day. As of writing, the pair, which touched a new daily high of 1.2845 in the last hour, was trading at 1.2832, up 0.42% on a daily basis.
DXY looks to close fifth straight trading day higher
The sharp upsurge witnessed in the GBP/USD pair after the Bank of England downplayed the odds of negative rates in its policy statement caused the greenback to lose interest. The US Dollar Index (DXY) slumped to a daily low of 91.08 but didn’t have a difficult time turning north, once again, during the American session. Currently, the DXY was trading at its highest level in more than two months at 91.55, gaining 0.42% on the day.
The data published by the US Department of Labor revealed on Thursday that the Initial Jobless Claims last week dropped to 779,000 from 812,000 and this reading came in better than the market expectation of 830,000.
On the other hand, following an impressive three-day rally, crude oil prices seem to have gone into a consolidation phase on Thursday, allowing USD’s market valuation to continue to impact USD/CAD’s movements. At the moment, the barrel of West Texas Intermediate (WTI) is posting small daily gains at $56.05.
On Friday, labour market reports from Canada and the United States will be watched closely by market participants. Markets expect the Net Change in Employment in Canada to arrive at -47.5K in January and a stronger-than-expected print could help the CAD find demand.
Technical levels to watch for
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