USD/CAD drops to a fresh daily low at 1.2060 despite oil selloff
- USD/CAD continues to push lower during the American trading hours.
- US Dollar Index drops below 90.00 as market mood improves.
- WTI trades in the negative territory below $63.
After spending the majority of the day above 1.2100, the USD/CAD pair lost its traction during the American trading hours and dropped to a daily low of 1.2060. As of writing, the pair was losing 0.5% on the day at 1.2070.
DXY drops below 90.00
The renewed selling pressure surrounding the greenback allows USD/CAD to edge lower in the second half of the day. With Wall Street's main indexes starting the day in the positive territory, the USD struggled to preserve its strength and the US Dollar Index (DXY) was last seen losing 0.3% on the day at 89.90. Reflecting the improving market sentiment, the S&P 500 Index is rising 0.8% and the Nasdaq Composite is up 1.6%.
On the other hand, the barrel of West Texas Intermediate (WTI) continues to trade deep in the red below $63, limiting USD/CAD downside for the time being.
In the meantime, the Bank of Canada's (BoC) Financial System Review Summary showed that the bank was concerned about household indebtedness and the rapid rise in house prices. Nevertheless, the BoC's publication failed to trigger a meaningful market reaction.
The data from the US showed on Thursday that the weekly Initial Jobless Claims dropped to 444,000 from 478,000. This reading came in better than the market expectation of 450,000 and helped risk flows remain in control of financial markets.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
