USD/CAD stays below 1.2600 mark on oil price recovery, softer USD
- USD/CAD is pushing lower in the initial Asian trading hours on Thursday.
- US Dollar Index fell below 93.00 amid improved risk appetite, economic data.
- The Canadian dollar picks up momentum as oil precise stays above $67.00.
After touching the high of 1.2643 in the US session, USD/CAD is moving lower in the early morning Asia session. The pair confides in a very close trading band with less than 10-pips movement.
At the time of writing, USD/CAD is trading at 1.2590, down 0.01% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, losses track and slips below 93.00 on vaccine optimism, which helped riskier assets on improved risk sentiment.
US Durable Goods Orders fell 0.1% in July, much less than the market forecast of 0.3%.
On the other hand, the Canadian dollar gained amid a consistent recovery in crude oil prices.
Oil prices currently rising nearly 0.60% on the day near $68.00, which capped the downside for the loonie. Oil is one of Canada’s major export commodities.
Wholesale sales in Canada fell 2% in July, the data failed to move the pair in a meaningful direction.
As for now, traders are waiting for the US Gross Domestic Product (GDP) Index, Corporate Profits, Initial Jobless Claims data to trade fresh trading impetus.
USD/CAD additional levels