• USD/CAD is trading in the negative territory on Thursday.
  • US Dollar ındex consolidates weekly gains above 92.50.
  • Focus shifts to Q4 GDP and weekly Initial Jobless Claims data from US.

Despite the broad-based USD strength, the USD/CAD pair closed in the negative territory on Wednesday as surging crude oil prices provided a boost to the commodity-related loonie. On Thursday, the pair is trading in a relatively tight range and was last seen posting small daily losses at 1.2557.

Oil rally loses steam 

The barrel of West Texas Intermediate (WTI) gained more than 6% on Thursday after Suez Canal got blocked by a large container ship that got stuck sideways. Additionally, Reuters reported that OPEC+ producers were likely to keep the output steady at the April meeting amid renewed concerns over a steady demand recovery. Currently, WTI is staging a technical correction and was last seen losing 1.5% on the day at $59.85.

On the other hand, the US Dollar Index, which closed the previous two trading days in the negative territory and rose more than 0.8% during that time span, is moving sideways around 92.60 ahead of key data releases. The 10-year US Treasury bond yield is also staying calm on the day, not providing any directional clues to the USD.

In the early American session, the US Bureau of Economic Analysis will publish its final reading of the fourth-quarter GDP growth. Moreover, the US Department of Labor will release its weekly Initial Jobless Claims data.

Technical levels to watch for

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