- USD / CAD breaks 1.3100 on Thursday.
- WTI is trading in negative territory near $ 41.
- The US dollar index rebounds above 92.50 as sentiment worsens.
After falling to a weekly low of 1.3032 on Wednesday, the USD / CAD pair turned north on Thursday as lower crude oil prices made it difficult for the commodity-sensitive loonie to find demand. At the time of writing, the pair was up 0.25% on a daily basis to 1.3114.
WTI can’t hold above $ 42
Heightened optimism for a steady recovery in global energy demand amid positive development of coronavirus vaccines and hopes of further cuts in oil production boosted crude oil prices in the first half of the week . However, a barrel of West Texas Intermediate (WTI), which climbed to $ 42.50 on Wednesday, appears to have entered a phase of consolidation and was last seen losing nearly 1% on the day to 41.15 $.
Meanwhile, the bad mood in the market, reflected by the sharp declines seen in major European stock indexes, is helping the greenback to strengthen against its rivals. Right now, the US dollar index is up nearly 0.4% on the day to 92.66.
Later today, weekly data on the US Department of Labor’s initial job applications and the Federal Reserve Bank of Philadelphia’s manufacturing survey will be examined for further impetus. On the other hand, ADP Employment Change will be presented in the Canadian Economic Register.
Investors will also keep a close eye on Wall Street. The S&P 500 Futures is currently down 0.3% on the day, and the USD could retain its bullish momentum in the second half of the day if US stocks suffer large losses.