After dipping to the 1.2500 region, the USD/CAD regained its footing.
Ahead of US data releases, the US Dollar Index rises beyond 92.50.
The Canadian dollar continues to be weighed down by falling crude oil prices.
On Wednesday, the USD/CAD pair remained almost steady before edging upward during Asian trading hours on Thursday. During the European session, however, the pair lost traction and fell to the 1.2500 region. Despite this, as the greenback gained momentum, USD/CAD reversed course and was last seen up 0.22 percent on the day at 1.2534.
Despite broad-based USD depreciation, the CAD struggled to outperform its American counterpart due to the Bank of Canada’s (BoC) cautious tone on policy outlook. Furthermore, decreasing crude oil prices have added to the loonie’s burden. On Wednesday, the barrel of West Texas Intermediate fell more than 3% and was last spotted trading at $71.75, down 1.55 percent on the day.
The US Dollar Index, on the other hand, rose ahead of the American session as the negative impact of FOMC Chairman Jerome Powell’s dovish statements appeared to be short-lived. The US Dollar Index is currently trading at 92.52, up 0.17 percent.
Later in the day, the Empire State Manufacturing Index of the Federal Reserve Bank of New York, weekly Initial Jobless Claims, and June Industrial Production statistics from the United States will be scrutinized for new impetus. On the second day of his hearing, FOMC Chairman Powell will take questions, but he is unlikely to offer any new insights into the policy outlook.
The Canadian economic calendar will include the ADP Employment Change for June./n
