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  • USD/CAD is falling for the second straight day on Thursday.
  • US Dollar Index lost its recovery momentum before testing 94.00.
  • WTI is trading flat on the day near $40.

The USD/CAD lost nearly 70 pips on Wednesday as rising crude oil prices helped the commodity-sensitive loonie gather strength against its rivals. With the greenback struggling to stage a convincing recovery on Thursday, the pair extended its slide and touched its lowest level in 10 days at 1.3277. As of writing, USD/CAD was down 0.23% on the day at 1.3287.

DXY remains depressed below 94.00

Ahead of key macroeconomic data releases from the US, the US Dollar Index (DXY), which closed the previous three days in the negative territory, is down 0.03% at 93.78. The upbeat market mood, as reflected by a 0.85% gain seen in the S&P 500 futures, seems to be weighing on the greenback.

Later in the day, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve’s preferred gauge of inflation. Other data releases from the US will include Personal Income, Personal Spending, Markit Manufacturing PMI and ISM Manufacturing PMI.

On the other hand, after gaining nearly 2% on Wednesday, the barrel of West Texas Intermediate is trading flat on the day near $40, allowing the USD’s market valuation to continue to impact USD/CAD’s movements. The only data featured in the Canadian economic docket on Thursday will be the Markit Manufacturing PMI.

Technical levels to watch for