USD/CAD is posting small daily losses below 1.3400
- USD/CAD is trading in the red for the fourth straight day.
- US Dollar Index is staying relatively calm near 95.00.
- Weekly Initial Jobless Claims in US is expected to remain steady at 1.3 million.
The USD/CAD pair closed the first three days of the week in the negative territory and lost more than 100 pips during that period. With the greenback struggling to stage a decisive rebound on Thursday, the pair stretched lower and touched a daily low of 1.3369 before edging higher modestly. As of writing, the pair was still down 0.18% on the day at 1.3390.
USD remains on the back foot
During the first half of the week, the heavy selling pressure surrounding the USD caused USD/CAD to fall sharply. Pressured by the risk-on environment following the EU's agreement on the recovery fund weighed on the US Dollar Index (DXY) and dragged it to its lowest level in more than four months at 94.78 on Thursday.
Ahead of the US Department of Labor's weekly Initial Jobless Claims data, which is expected to remain unchanged at 1.3 million, the DXY is virtually unchanged on the day at 94.97. More importantly, investors will keep a close eye on Wall Street amid US stocks' strong inverse-correlation with the DXY.
Meanwhile, crude oil is staying relatively calm on Thursday, allowing the USD's market valuation to continue to impact the pair's movements. Although the US Energy Information Administration (EIA) reported a large increase in the US crude oil stocks, the barrel of West Texas Intermediate gained nearly 1% to close a little below $42 on Thursday. At the moment, the WTI is flat on the day at $41.80.
Technical levels to watch for