USD/CAD steadies below 1.34, adds more than 50 pips today

• WTI drops more than 1% on Thursday.
• Initial jobless claims in the U.S. drop to lowest since 1969.
• US Dollar Index rises above 97.

After spending the majority of the day moving sideways in a tight range above the 1.33 mark, the USD/CAD pair rose sharply in the early NA session and touched its daily high at 1.3398. With the trading action turning subdued in the last couple of hours, the pair started to consolidate its daily gains. As of writing, the pair was at 1.3373, adding 0.4% on a daily basis.

The commodity-sensitive loonie on Thursday struggled to find demand amid falling crude oil prices and allowed the dollar's market valuation to impact the pair's action. The barrel of West Texas Intermediate, which advanced to its highest level in more than five months at $64.77 earlier this week, extended its technical correction today and was last seen losing 1.44% on the day at $63.50.

On the other hand, the greenback shook off the negative effects of the FOMC's cautious statement and the US Dollar Index climbed above the 97 mark. The U.S. Department of Labor today reported that initial jobless claims for the first time in nearly 50 years came in below 200K in the week ending April 5. Furthermore, the Producer Price Index in March rose 2.2% and 0.6% on a yearly and monthly basis, respectively, with both readings beating analysts' estimate.

There won't be any macroeconomic data releases from Canada tomorrow and the import/export price index alongside the UOM's Consumer Sentiment Index from the U.S. will be looked upon for fresh impetus.

Technical levels to consider