USD/CAD trades at fresh multi-month lows below 1.2400
- USD/CAD is falling for the third straight day on Thursday.
- US Dollar Index remains on the back foot ahead of US data.
- WTI trades in the positive territory above $81.00.
The USD/CAD pair extended its slide during the European trading hours and touched its lowest level since early July at 1.2373. As of writing, the pair was down 0.45% on a daily basis at 1.2384.
WTI reclaims $81 on Thursday
The broad-based dollar weakness allows the pair to push lower while rising crude oil prices provide a boost to the CAD as well on Thursday.
Pressured by the ongoing decline in the US Treasury bond yields, the US Dollar Index (DXY) is losing 0.15% on the day at 93.85. The benchmark 10-year US T-bond yield, which fell nearly 6% in the previous two trading days, is down 0.7% at 1.527%. Later in the session, the US Department of Labor's weekly Initial Jobless Claims data and September Producer Price Index (PPI) figures will be looked upon for fresh impetus.
On the other hand, the barrel of West Texas Intermediate (WTI) is up nearly 1% on the day at $81.40 as investors await the weekly crude oil and gas inventory data published by the US Energy Information Administration (EIA). The upbeat market mood seems to be the primary driver behind crude oil prices.
Meanwhile, August Manufacturing Sales will be featured in the Canadian economic docket but this report is unlikely to have a noticeable impact on the loonie's performance against its rivals.
Technical levels to watch for