- USD / CAD is trading little around 1.3000 on Thursday.
- WTI stages a technical correction after six consecutive days of victories.
- The US dollar index is hanging on to small gains above 92.00.
The USD / CAD is moving in an extremely tight trading range on Thursday and remains on track to close flat around 1.3000 during the Thanksgiving holiday in the United States.
WTI turns south on Thursday
Earlier in the week, the sharp rise in crude oil prices helped the commodity-linked loonie strengthen against its rivals. On Wednesday, a barrel of West Texas Intermediate (WTI) hit its highest level since early March at $ 46.23 supported by renewed optimism for a convincing rebound in global energy demand.
With no significant fundamental drivers on Thursday, WTI appears to have started retracing its six-day rally and was last seen losing 1.3% on the day to $ 45.25. Nonetheless, the slide in WTI does not appear to have a negative impact on the CAD so far.
In contrast, the greenback, which struggled to find demand during the first half of the week, remains relatively resilient against its peers on Thursday. However, the lack of release of macroeconomic data and weak trading conditions suggest that the US Dollar Index (DXY) is staging a technical correction. For now, the DXY is up 0.12% on the day to 92.10.
On Friday, the US stock and bond markets will reopen but close early and market action is expected to remain subdued.