The Loonie is currently trying to settle back above 1.268, while the US dollar is gaining ground against a broad basket of currencies.
The US Dollar Index is testing the resistance level at 97.75. If this test is successful, the U.S. Dollar Index will move towards the next resistance at 98, which will be bullish for USD/CAD.
Today, the US released Initial Jobless Claims report, which indicated that 215,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 225,000.
The final reading of U.S. Services PMI report indicated that Services PMI increased from 51.2 in January to 56.5 in February, compared to analyst consensus of 56.7. Factory Orders increased by 1.4% month-over-month in January, compared to analyst consensus of 0.7%.
FX market investors will also continue to monitor the developments in the commodity markets. WTI oil pulled back towards the $110 level after a failed attempt to settle above $116.50, which was bearish for the Canadian dollar.
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