USD/CAD trades at fresh daily highs near 1.3550
- USD/CAD pair is posting modest gains following Wednesday's drop.
- Falling crude oil prices weigh on commodity-sensitive CAD.
- US Dollar Index stages recovery during American session.
The USD/CAD pair moved sideways in a tight range near 1.3500 during the first half of the day before gaining traction during the American session. As of writing, the pair was trading at fresh daily highs near 1.3550, gaining 0.3% on a daily basis.
DXY rebounds in the second half of the day
On Thursday, Wall Street's main indexes started the day deep in the negative territory amid concerns over surging coronavirus cases in the US. The sour market sentiment allowed the USD to start gathering strength against its rivals and helped the US Dollar Index (DXY) pare its early losses. At the moment, the DXY is up 0.27% on the day at 96.30 and the S&P 500 Index is down 0.5%.
Earlier in the day, the data published by the ADP Research Institue showed that employment in Canada increased by 1,042,900 from May to June. However, the report further revealed that May's print of +208,400 got revised down to -2,951,400 and weighed on the loonie.
Moreover, the poor performance of crude oil makes it difficult for the CAD to stay resilient against its peers on Thursday. As of writing, the barrel of West Texas Intermediate (WTI) was down 0.62% on the day at $40.60.
On the other hand, the US Census Bureau reported that monthly Retail Sales in the US increased by 7.5% in June but was largely ignored by the market participants.
Technical levels to watch for