USD/CAD struggles to stage a convincing rebound, trades flat around 1.2920
|- USD/CAD is trading in a tight range above 1.2900 on Thursday.
- WTI retreats below $45 as investors await OPEC to announce output strategy.
- USD remains on the back foot, continues to weaken against major rivals.
The USD/CAD pair slumped to its lowest level since October 2018 at 1.2905 on Thursday and started to recover its losses. However, the pair met resistance around 1.2950 and turned south ahead of the American session. As of writing, USD/CAD was virtually unchanged on a daily basis at 1.2922.
Oil prices struggle to rise on Thursday
Crude oil's uninspiring performance seems to be limiting the CAD's gains for the time being. Earlier in the day, Reuters reported that OPEC+ was looking to introduce an oil cut rollover with a gradual increase in the output. Pressured by the uncertainty surrounding the 2021 oil production strategy, the barrel of West Texas Intermediate is posting small daily losses at $44.80.
On the other hand, the broad-based USD weakness doesn't allow USD/CAD to make a convincing recovery. The US Dollar Index is currently at its lowest level in more than two years at 90.83, losing 0.3% on the day.
In the absence of significant fundamental drivers, the upbeat performance of major European currencies, especially the GBP, is making it difficult for the USD to find demand.
On Thursday, the US economic docket will feature the Department of Labor's weekly Initial Jobless Claims report and the IHS Markit's and the ISM's services PMI figures.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.