USD/CAD approaches monthly high above 1.2700 on USD gains, Employment data eyed

• USD/CAD applaud the gains on Thursday in the European trading hours.
• US Dollar Index stands tall above 93.40 after Fed’s minutes of the meeting, risk-off sentiment.
• The Canadian dollar weighs by higher CPI data, weaker commodity prices.

USD/CAD prints handsome gains on Thursday in European trading hours. After testing the low around 1.2510 on 16 August, the pair continues to rise for the fourth straight session.

At the time of writing, USD/CAD is trading at 1.2702, up 0.37% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, inching closer to 93.50 in the wake of risk-off among investors and expectations of Fed taper’s talk.

On the other hand, the Canadian dollar failed to impress investors on falling oil prices on demand concerns.

Oil prices continued to decline for the sixth consecutive session amid demand concerns and a stronger dollar.
 Canadian Prime Minister Justin Trudeau said monetary policy is not a top priority for his government post-September 20 elections. The comments just came after Canada’s Consumer Price Inflation (CPI) climbed to 3.7% in July from 3.1% in June.

As for now, traders are waiting for the US Initial Jobless Weekly Claims and Candian Employment data to trade fresh trading impetus.

USD/CAD additional levels