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• USD/CAD edges lower as the commodity-linked CAD receives support from improved Oil prices.
• WTI price extends its gains due to optimism surrounding the policy support to revive economic growth worldwide.
• The US Dollar Index reached a fresh multi-year high of 109.56 following the US Initial Jobless Claims on Thursday.

USD/CAD halts its three-day winning streak, trading around 1.4390 during the early European hours on Friday. The rise in crude Oil prices provides support to the commodity-linked Canadian Dollar (CAD), given Canada is the largest Oil exporter to the United States (US).

West Texas Intermediate (WTI) Oil price continues its winning streak for the sixth consecutive day, trading around $73.00 per barrel at the time of writing. WTI price reached two and a half-month high at $73.39 on Thursday. Crude Oil prices were buoyed by optimism that governments worldwide would ramp up policy support to revive economic growth, potentially boosting fuel demand.

However, factory activity in Asia, Europe, and the US ended 2024 on a weak note, as expectations for the new year dimmed due to growing trade risks associated with the incoming Donald Trump presidency and China's fragile economic recovery.

Data released by S&P Global on Thursday showed that Canada’s Manufacturing PMI increased to 52.2 in December, up from 52.0 in November, marking its highest level since February 2023. This figure exceeded expectations, which had projected a reading of 51.9.

The US Dollar Index (DXY), which measures the US Dollar’s (USD) performance against six major currencies, trades around 109.10 at the moment of writing. The DXY corrects slightly downwards after climbing to a fresh multi-year high of 109.56 following the Jobless Claims in the United States (US) release on Thursday.

The US Initial Jobless Claims for the week ending December 27 have come in lower than expected. Individuals claiming jobless benefits for the first time were 211K, lower than estimates of 222K and the former release of 220K.

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