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  • USD/CAD gained traction and rose above 1.3100 on Thursday.
  • Crude oil remains under pressure, WTI drops toward $40.
  • US Dollar Index rises above 93.00 ahead of US data dump. 

The USD/CAD pair registered small losses on Wednesday but turned north on Thursday as slumping crude oil prices made it difficult for the commodity-related loonie to find demand. As of writing, the pair was up 0.55% on the day at 1.3112.

WTI slumps to fresh monthly lows

The heavy selling pressure surrounding crude oil remains intact on Thursday. On Wednesday, the barrel of West Texas Intermediate (WTI) lost more than 3% and extended its slide toward $40. At the moment, the WTI, which touched a monthly low of $40.20 during the European session, is down 2.2% on the day at $40.65.

On the other hand, the US Dollar Index (DXY) continues to push higher, helping the pair preserve its bullish momentum. Ahead of the US Department of Labor’s weekly Initial Jobless Claims data and the IHS Markit and the ISM’s Services PMI reports, the DXY is up 0.38% on the day at 93.02.

Earlier in the session, the monthly data published by Challenger Gray & Christmas showed that planned job cuts in the US-based employers declined by 56% from 262,649 in July to 115,762 in August but was largely ignored by the market participants.

Meanwhile, Trade Balance data from Canada will be looked upon for fresh impetus as well. Investors expect the trade deficit to narrow to $2.5 billion in July.

Technical levels to watch for

 

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