- The US dollar falls overall stocks are rising sharply.
- WTI rebounds towards $ 78.00, up 0.70%.
- USD / CAD is heading towards the lowest close in a month ahead of key jobs data.
USD / CAD fell below 1.2560 and fell to 1.2540, hitting its lowest level since September 7th. It remains close to lows with an intraday bearish bias, favored by a weaker dollar and higher crude oil prices.
On Wall Street, the Dow Jones gained 1.40% and the Nasdaq 1.59%. Improving market sentiment weighs on the US dollar. The decline in energy prices in Europe and the agreement between Democrats and Republicans in the US Congress on the betting cap are contributing to the positive tone in financial markets.
Economic data also helped boost stocks. Initial jobless claims in the United States fell more than expected to 328K. In Canada, the Ivey PMI unexpectedly rose in September to 70.4 from 66. On Friday, critical economic data is expected in the United States and Canada with their employment reports.
Another factor keeping USD / CAD under pressure on Thursday is crude oil. WTI rebounded strongly from under $ 75.00 to $ 78.00; it is up 0.72%.
From a technical standpoint, the bearish bias will likely remain strong as USD / CAD holds below 1.2560. At 1.2510, the 200-day moving average emerges, then at 1.2490, the September low. A rally above 1.2600 should ease the pressure.