USD/CAD clings to modest daily gains above 1.3500
- USD/CAD is trading in a relatively tight range above 1.3500.
- WTI posts small daily losses, trades around mid-$36s.
- US Dollar Index looks to snap seven-day losing streak.
The USD/CAD pair slumped to its lowest level since early March at 1.3478 on Wednesday and staged a modest rebound on Thursday. As of writing, the pair was up 0.2% on a daily basis at 1.3520.
Crude oil prices remain depressed
The poor performance of crude oil prices makes it difficult for the commodity-related loonie to stay resilient against its rivals. The barrel of West Texas Intermediate (WTI) closed in the negative territory on Wednesday amid uncertainty surrounding the OPEC+ meeting and struggled to gain traction. According to Reuters, it's still possible for the OPEC+ meeting to take place this week if Iraq and other countries pledge to improve the compliance with output cut agreement.
Later in the day, Trade Balance data will be released from Canada. Additionally, Bank of Canada's (BoC) Deputy Governor Toni Gravelle will deliver a speech at 1800 GMT. Moreover, weekly Jobless Claims, Trade Balance and Unit Labor Costs will be published from the US as well. Ahead of these data, the US Dollar Index is up 0.26% on the day at 97.55, looking to snap its seven-day losing streak.
Meanwhile, investors will keep a close eye on crude oil prices and a significant reaction to OPEC headlines could impact USD/CAD's movements.
On Friday, jobs reports from both the US and Canada will be the last significant macroeconomic data releases of the week.
Technical levels to watch for