USD/CAD continues to fall toward 1.3200, trades at fresh multi-month lows

• USD/CAD falls for the fourth straight day on Thursday.
• US Dollar Index stays in the negative territory a little above 93.00.
• WTI stays quiet above $42.50 following Wednesday’s upsurge.

After closing the first three days of the week in the negative territory, the USD/CAD continued to push lower on Thursday and slumped to its weakest level since mid-February at 1.3209. As of writing, the pair was down 0.22% on a daily basis at 1.3215.

Oil rally supports CAD

The broad-based USD strength and rising crude oil prices weighed on USD/CAD during the first half of the week. Despite the OPEC’s dismal global energy demand outlook, falling crude oil inventories in the US helped the barrel of West Texas Intermediate (WTI) preserve its bullish momentum. The WTI gained more than 2% on the day and was last seen consolidating its weekly gains near $42.60.

On the other hand, the US Dollar Index’s (DXY) upward correction came to an end before it reached 94.00 and made it difficult for USD/CAD to stage a recovery. Ahead of the weekly Initial Jobless Claims data, the DXY is down 0.33% on the day at 93.11. A modest decline witnessed in the US Treasury bond yields on Thursday seems to be putting additional weight on the USD’s shoulders. 

On Friday, Manufacturing Sales will be featured in the Canadian economic docket. Moreover, Retail Sales, Industrial Production and the University of Michigan’s Consumer Sentiment Survey from the US will be looked upon for fresh catalysts. 

Technical levels to watch for