- USD/CAD continues to push lower in late American session.
- WTI is gaining more than 3% on Thursday.
- US Dollar Index stays flat on the day above 93.50.
The USD/CAD pair extended its slide in the late American session and touched its lowest level since September 21st at 1.3196. As of writing, the pair was down 0.4% on the day at 1.3200.
WTI climbs above $41
Surging crude oil prices on Thursday continue to provide a boost to the commodity-related loonie. With the oil output in the US declining by more than 1.5 million barrels per day due to Delta Hurricane, the barrel of West Texas Intermediate (WTI) shot higher and was last seen gaining around 3% on the day at $41.20.
Earlier in the day, Bank of Canada Governor Tiff Macklem said that they were not actively discussing negative interest rates and added that they could scale up monetary tools if needed. Nevertheless, these comments were largely ignored by the market participants.
On the other hand, the US Dollar Index (DXY) is struggling to make a decisive move in either direction on Thursday and allowing crude oil prices to continue to impact USD/CAD movements. At the moment, the DXY is virtually unchanged on the day at 93.60.
On Friday, the Canadian jobs report will be looked upon for fresh impetus. Investors will keep a close eye on crude oil prices as well. Markets expect the Unemployment Rate in Canada to fall to 9.7% in September from 10.2% in August and a weaker-than-expected reading could limit CAD’s gains even if oil rally continues.
Technical levels to watch for
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