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  • USD/CAD looks to close the day modestly higher. 
  • US Dollar Index is rising for the second straight day on Thursday.
  • WTI rebounds to $39, helping CAD limit its losses. 

The USD/CAD pair dropped toward 1.3600 during the European session but staged a decisive recovery in the second half of the day boosted by the broad-based USD strength. However, after climbing to 1.3670, rising crude oil prices helped the commodity-loonie stay resilient against the greenback. As of writing, the pair was up 0.1% on the day at 1.3651.

DXY extends rebound into second straight day

Heightened worries over the growing number of COVID-19 cases in the US provided a boost to the safe-haven USD on Thursday. The US Dollar Index (DXY), which gained 0.55% on Wednesday, advanced to 97.60 before going into a consolidation phase in the late American session. At the moment, the index is up 0.22% on the day at 97.42.

Meanwhile, the data published by the US Census Bureau showed that Durable Goods Orders increased by 15.8% in May. Furthermore, the Bureau of Economic Analysis in its third estimate left the first-quarter GDP reading unchanged at -5% as expected.

On the other hand, following a two-day slump, the barrel of West Texas Intermediate rose to $39 on Thursday and capped USD/CAD’s gains. The WTI was last seen trading at $38.80, gaining nearly 2% on a daily basis.

There won’t be any macroeconomic data releases featured in the Canadian economic docket and investors will keep a close eye on Personal Spending and Personal Income figures from the US.

Technical levels to watch for