USD/CAD recovers modestly, trades around 1.2600 ahead of US data

• USD/CAD is moving sideways around 1.2600 for the fourth straight day.
• US Dollar Index posts small daily losses ahead of mid-tier data.
• WTI is edging higher after closing in the negative territory on Wednesday.

The USD/CAD pair struggled to make a decisive move in either direction during the first half of the week and continues to move sideways around 1.2600 on Thursday. Currently, the pair, which touched a daily low of 1.2585, was down 0.1% on the day at 1.2603.

Eyes on US data

Despite the broad-based selling pressure surrounding the greenback, falling crude oil prices made it difficult for the loonie to find demand since the beginning of the week. Although the barrel of West Texas Intermediate is trading in the positive territory near $69 on Thursday, investors don't seem to be showing interest in the CAD.

On the other hand, the US Dollar Index remains on the back foot ahead of mid-tier data releases, allowing USD/CAD to stay in its weekly range. Earlier in the day, the data from the US showed that the Challenger Job Cuts declined to the lowest level since 1997 at 15,723 in June but this report failed to help the USD gather strength.

Later in the session, the weekly Initial Jobless Claims alongside the second-quarter Unit Labour Costs and the Nonfarm Productivity figures from the US will be looked upon for fresh impetus.

Technical levels to watch for