CAD at mercy of oil price fluctuations

USD/CAD is currently trading at highs of the day slightly tend to uptrend to 1.2450 per barrel mark, sharply up from Asia Pacific session lows around the 1.2400 level, the pair is trading as a function of oil prices more than anything else.

Crude oil prices have reversed sharply from what were at the time very impressive on the day gains (WTI was up more than $3.0 above $83.00) to hit fresh near four-week lows (WTI currently trades around $79.00), with this latest bout of selling pressure exerting a drag on the CAD and giving USD/CAD tailwinds.

The pair now trades at its highest levels since 13 October, and the bulls will be hoping that oil can continue with its downwards trajectory enough so that USD/CAD hits the next notable area of resistance around 1.2480, where the 200-day moving average resides.

With regards to Canadian economic news, there has not been anything of note on Thursday aside from a slightly bigger than expected trade surplus of C$ 1.86B in September, data which hardly ever moves USD/CAD anyway.