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  • USD/CAD is fluctuating in a very tight range on Thursday.
  • WTI is consolidating Wednesday’s gains, trades below $48.
  • US Dollar Index edges lower as markets eye Brexit deal.

The USD/CAD pair is moving sideways in a narrow band as trading volume thins out on Christmas Eve. As of writing, the pair was unchanged on a daily basis at 1.2843.

WTI reverses direction on Thursday

On Wednesday, rising crude oil prices and the broad-based USD weakness caused USD/CAD to snap a three-day winning streak.

With the barrel of West Texas Intermediate (WTI) gaining more than 2%, the commodity-related outperformed its rivals and USD/CAD lost nearly 60 pips. On Thursday, the WTI is consolidating its gains near $47.75, losing 0.6% on the day.

On the other hand, the USD came under renewed selling pressure as investors cheered reports suggesting that the UK and the EU reached a trade deal. However, the official announcement that was expected to be released earlier in the day got delayed due to some details regarding fishing quotas.

Nevertheless, the greenback struggled to attract investors and the US Dollar Index was last seen losing 0.12% on the day at 90.30.

The only data from Canada showed on Thursday that Building Permits in November increased by 12.9% to beat the market expectation of 3% but was largely ignored by market participants.

Technical levels to watch for