USD/CAD meets resistance at 1.2600, trades flat near 1.2580
|- USD/CAD is moving sideways in a relatively tight range on Thursday.
- Crude oil prices are pushing lower for second straight day.
- US Dollar Index stays quiet above 94.00 ahead of Initial Jobless Claims data.
The USD/CAD pair erase its daily gains and closed virtually unchanged at 1.2587 on Wednesday. Although the pair managed to edge higher toward 1.2600 in the early European session on Thursday, it seems to be struggling to gather bullish momentum. As of writing, USD/CAD was flat on the day at 1.2585.
WTI declines to $76 following Wednesday's drop
Falling crude oil prices amid easing concerns over energy inflation is making it difficult for the CAD to gather strength against its rivals. The barrel of West Texas Intermediate (WTI), which lost more than 2.5% on Wednesday, is currently trading near $76, down 1% on the day.
On the other hand, the improving market mood is not allowing the greenback to find demand and limiting USD/CAD's upside. Reflecting the risk-positive market environment, major European equity indexes are up more than 1% and the S&P Futures are rising 0.65%. Meanwhile, the US Dollar Index is posting small daily losses at 94.17.
Later in the session, the US Department of Labor will publish its weekly Initial Jobless Claims data. Nevertheless, investors are likely to pay little to no attention to this report ahead of Friday's critical September jobs report. Meanwhile, market participants will keep a close eye on US stocks and a decisive rally in Wall Street's main indexes could put additional weight on the safe-haven USD's shoulders in the second half of the day.
Technical levels to watch for
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