USD/CAD recovers to 1.4100 on broad USD strength
|- USD/CAD fluctuates in a tight range below 1.4100 on Thursday.
- Rising crude oil prices help the CAD stay resilient against the USD.
- US Dollar Index pushes higher on US Pres. Trump's comments.
The USD/CAD pair is having a difficult time setting its next short-term direction on Thursday as the rising crude oil prices help the CAD keep a firm footing against the USD. As of writing, the pair was unchanged on the day at 1.4099.
Trump helps USD gather strength
During an interview with Fox Business Network on Thursday, US President Donald Trump said having a strong dollar would support the economic recovery after coronavirus crisis. Boosted by these comments, the US Dollar Index climbed to its highest level since April 24th at 100.49.
In the second half of the day, the weekly Initial Jobless Claims data from the US will be looked upon for fresh impetus. Markets expect the data to come in at 2.5 million for the week ending May 9th.
On the other hand, after the weekly EIA report showed a decline in the US crude oil stocks for the first time in January, crude oil prices gained traction. The barrel of West Texas Intermediate, which posted small daily gains on Wednesday, was last seen trading at $26.75, gaining 3.15% on a daily basis.
The Canadian economic docket will feature Manufacturing Sales data for March. Additionally, the Bank of Canada will release its Financial System Review.
Technical levels to watch for
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