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Heading into Thursday's European session, USD/CAD oscillates near the intraday high of 1.3470-75. Buyers of the Loonie-U.S. Dollar pair applaud the recent decline in Oil prices and the US Dollar's strength at the multi-day high despite the market's lethargic performance.

In spite of this, WTI crude Oil posts slight losses close to $72.60 as it consolidates the largest daily gains in two weeks amidst slightly unsettling market conditions. The strength of the US Dollar and expectations of sluggish energy demand, primarily as a result of weaker China data and Western recession concerns, bolster the adverse sentiment surrounding black gold.

With this, US Dollar Index (DXY) purchasers maintain control at the highest levels in seven weeks, bidding mildly near 102.90 at the time of publication.

Notably, the recent increase in bullish wagers surrounding the Fed's 0.25% rate hike in June, to around 20% at the latest compared to prior expectations favoring no such actions in 2023, favors US Dollar bulls. US President Joe Biden and House Speaker Kevin McCarthy managed to persuade the markets that they can work together to avoid a 'catastrophic' default, which bolstered the market's appetite for risk and boosted the US Dollar.

S&P500 Futures post modest losses despite Wall Street's ebullient close, while US Treasury bond yields remain stationary at a multi-day high. Consequently, the US 10-year and 2-year Treasury bond yields rose to their greatest levels since May 1 and April 24 while displaying a four-day uptrend near 3.57 percent and 4.16 percent, respectively, before easing to 3.57 percent and 4.14 percent at press time.

In the near future, the weekly US Jobless Claims and Philadelphia Fed Manufacturing Survey will join the Canadian Employment Insurance Beneficiaries Change and New Housing Price Index to keep intraday USD/CAD traders entertained. Above all else, risk catalysts are vital for establishing direction.

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