USD/CAD stays flat near 1.3000 despite falling crude oil prices
- USD/CAD is trading little changed around 1.3000 on Thursday.
- WTI stages a technical correction after six-day winning streak.
- US Dollar Index clings to small gains above 92.00.
The USD/CAD pair is moving in an extremely tight trading range on Thursday and remains on track to close flat around 1.3000 amid the Thanksgiving Day holiday in the US.
WTI turns south on Thursday
Earlier in the week, the sharp upsurge witnessed in crude oil prices helped the commodity-related loonie to gather strength against its rivals. On Wednesday, the barrel of West Texas Intermediate (WTI) touched its highest level since early March at $46.23 supported by renewed optimism for a convincing rebound in global energy demand.
In the absence of significant fundamental drivers on Thursday, the WTI seems to have started to retrace its six-day rally and was last seen losing 1.3% on the day at $45.25. Nevertheless, the WTI's slide doesn't seem to be having a negative impact on the CAD so far.
On the other hand, the greenback, which struggled to find demand during the first half of the week, is staying relatively resilient against its peers on Thursday. However, the lack of macroeconomic data releases and the thin trading conditions suggest that the US Dollar Index (DXY) is staging a technical correction. At the moment, the DXY is up 0.12% on the day at 92.10.
On Friday, stock and bond markets in the US will reopen but close early and the market action is expected to remain subdued.
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.
