USD/CAD struggles to hold on to recovery gains above 1.3400
- USD/CAD lost its recovery momentum after climbing above 1.3420.
- US Dollar Index retreated below 95.00 in the American session.
- WTI continues to trade in negative territory below $42.
The USD/CAD pair staged a rebound in the early trading hours of the American session and touched a fresh daily high of 1.3427 before losing its traction. As of writing, the pair was trading at 1.3395, losing 0.15% on a daily basis.
DXY drops below 95.00
The USD's market valuation continues to stay as the primary driver of USD/CAD's movements on Thursday. The US Dollar Index (DXY) turned north in the second half of the day as the disappointing data and US Treasury Secretary Mnuchin's comments on coronavirus bill weighed on the sentiment. Following an upsurge to a daily high of 95.18, however, the DXY slumped into the negative territory and was last seen losing 0.2% on the day at 94.75.
After falling for 15 straight weeks, the Initial Jobless Claims in the US increased by 109K to 1.41 million in the week ending July 18th, the US Department of Labor's weekly data showed on Thursday.
Meanwhile, Mnuchin said that the next coronavirus relief bill will not include a payroll tax cut. Additionally, Senate Minority Leader Chuck Schumer said Republican's COVID-19 response bill was "unserious and unsatisfactory."
Although Wall Street's main indexes trade in the red, they remain relatively resilient, making it difficult for the greenback to attract investors as a safe-haven.
On the other hand, the barrel of West Texas Intermediate (WTI) continues to trade in a tight range below $42, not impacting the commodity-related CAD's performance against its peers.
Technical levels to watch for