- USD/CAD broke below its weekly range on Thursday.
- US Dollar Index slumps below 92.30 in the American session.
- Crude oil stages decisive rebound, trades above $70.
The USD/CAD pair came under strong bearish pressure in the second half of the day on Thursday and dropped to its lowest level since August 16 1.2549. As of writing, the pair was down 0.5% on a daily basis at 1.2555.
WTI jumps above $70 on Thursday
The unabated USD selloff and rising crude oil prices weigh heavily on USD/CAD. After Wall Street's main indexes opened in the positive territory, the greenback struggled to find demand as a safe haven and the US Dollar Index was last seen trading at its weakest level in four weeks at 92.26, losing 0.25% on the day.
Supported by risk flows, the barrel of West Texas Intermediate is rising nearly 3% at $70.22, providing a boost to the commodity-sensitive loonie.
Earlier in the day, the data from Canada showed that the international trade surplus narrowed to $C0.78 billion from $C2.56 billion but this report was largely ignored by market participants.
On the other hand, the US Department of Labor reported that the Initial Jobless Claims declined to 340,000 in the week ending August 28 from 354,000.
On Friday, the US Bureau of Labor Statistics will release the Nonfarm Payroll (NFP) data for August. The ISM's August Services PMI will be featured in the US economic docket as well.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold gives away part of its earlier advance to $3,500
Gold retreated from its earlier record top of $3,500 per troy ounce as overbought signals and the rebound in the US Dollar seem to have prompted buyers to take a breather. Meanwhile, all the attention remains on the Trump-Powell effervescence and upcoming comments from Fed officials.
EUR/USD drops to daily lows near 1.1470, Dollar regains balance
EUR/USD slips back below the 1.1500 mark, trimming part of Monday’s rally as the Greenback picks up some upside momentum following recent multi-year losses. In the meantime, markets remain cautious in light of President Trump’s criticism of Fed Chair Jerome Powell and its potential implications for the US markets.
GBP/USD looks consolidative below 1.3400 on USD buying
GBP/USD drifts within a narrow band below the 1.3400 hurdle as the Greenback’s decent rebound continues to gather steam on Tuesday. Still, lingering worries over a US economic slowdown and doubts about the Fed’s independence are expected to limit Cable’s downside potential.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.