After surging lower early in the day, the USD/CAD pair reversed course.
On Thursday, the US Dollar Index extends its surge past 92.50.
WTI is pulling down from multi-year highs, but it is still on track for big daily gains.
The USD/CAD pair staged a significant rebound in the second part of the day, reaching its highest level in ten days at 1.2442, after plunging to a daily low of 1.2381 during European trading hours. At the time of writing, the pair was trading at 1.2437, up 0.35 percent on the day.
Earlier in the day, the commodity-sensitive loonie was boosted by rising crude oil prices. The barrel of West Texas Intermediate achieved its highest level since October 2018 at $76.20, following reports that OPEC+ may discuss extending supply restrictions until the end of 2022. Oil prices retraced some of their daily gains as the latest reports revealed that OPEC+ has decided to postpone the ministerial meeting to Friday in order to have further discussions on the output strategy. WTI was currently trading at $74.90, up roughly 2% on the day.
The greenback, on the other hand, is gaining strength ahead of Friday’s Nonfarm Payrolls report, helping USD/CAD to remain in positive territory.
The US Dollar Index is currently trading at 92.58, up 0.25 percent on the day, thanks to positive data and rising US Treasury bond yields.
On Thursday, the US Department of Labor said that weekly initial jobless claims had dropped to 364,000, the lowest number since March 2020. In addition, the ISM Manufacturing PMI rose to 60.6 in June, indicating that manufacturing activity remained strong./n
