USD/CAD Slides as Stronger Oil Prices Boost Canadian Dollar Ahead of Key US Jobs Data
The USD/CAD exchange rate continued its decline on Thursday for the second consecutive day, trading near 1.4010 during European hours.
The Canadian Dollar (CAD) strengthened due to a rebound in crude oil prices, which is typical when energy prices rise as Canada is one of the world's largest oil exporters.
West Texas Intermediate (WTI) crude oil prices 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.
The escalation of the conflict increased fears of potential disruptions to regional oil supplies, offering support to energy prices and, in turn, the Canadian Dollar.