Oil Price Surge Boosts Loonie Ahead of Key US Labor Market Data

The USD/CAD pair continued its decline for a second consecutive session on Thursday, trading near 1.4010 during European hours.

This was primarily driven by renewed strength in the Canadian Dollar (CAD), which benefited from a rebound in crude oil prices.

As one of the world's largest oil exporters, Canada's currency typically strengthens when energy prices rise, providing additional downside pressure on the US Dollar against the Loonie.

The West Texas Intermediate (WTI) crude oil price recovered to around $74.90 per barrel after recording three straight daily losses, fueled by renewed concerns over Middle East supply risks following a deadly Israeli airstrike targeting Hezbollah infrastructure in southern Lebanon.