USD/CAD holds gains above 1.2600 amid weaker USD and WTI prices

• USD/CAD remains supported above 1.2600 amid risk-on mood.
• WTI-price weakness and subdued USD keeps the range play intact.
• Further upside remains at the mercy of the US data, Powell’s speech.

USD/CAD is trading on the front foot above 1.2600, consolidating the two-day uptrend to five-day highs of 1.2634.

The pause in the USD/CAD advance could be attributed to the subdued trading seen in the US dollar against its main peers so far this Thursday. The greenback has preserved the American rebound, although lacks follow-through bias ahead of the Fed Chair Jerome Powell’s speech at the IMF Spring event later today.

Meanwhile, the bearish sentiment around WTI prices weighs on the resource-linked Canadian dollar, in turn, supporting the upside in the spot. Oil prices remain undermined by a hefty build in the US gasoline inventories while mixed Asian equities also add to the weight on the higher-yielding oil.

On Wednesday, dovish FOMC minutes, uncertainty over President Joe Biden’s huge infrastructure bill and rising Treasury yields spooked investors, as they scurried for safety in the US currency.

This Thursday, markets look forward to the US weekly jobless claims and Powell’s appearance for fresh near-term trading opportunities.

USD/CAD: Technical levels