USD/CAD marches towards 1.2500 on weak oil prices

• USD/CAD has delivered a bullish open-drive as oil prices nosedive more than 5%.
• Biden aims for a massive oil release to corner the soaring inflation.
• The DXY has observed a dead cat bounce on weak Asian cues.

The USD/CAD pair has witnessed a strong buying interest from the market participants after sliding below 1.2450 on Wednesday. The major has displayed a bullish open-drive session on Thursday in which the asset initiates moving towards the north right from the first tick.

Loonie bulls have displayed a poor show on Thursday after the oil prices plunge like a house of cards. West Texas Intermediate (WTI), futures on NYMEX, is auctioning around $100.00 at the press time. The oil prices plunged after US President Joe Biden announced that its team is considering a massive oil release to the tune of 180 million barrels to counter the impact of soaring inflation as per Reuters.

Oil bears were eyeing a catalyst that could pump more oil into the global supply and for that Biden’s adherence to bringing price stability to the oil market by increasing the oil supply, has done its effect.

Meanwhile, the International Energy Agency (IEA) countries will decide on a collective oil release on Friday, Reuters reports, citing a statement from New Zealand’s Energy Minister’s office this Thursday has fueled the weakness in the oil prices. While writing the article, the WTI US oil has nosedived 5.33% in the Asian session. It is worth noting that Canada is the largest exporter of oil to the US and slippage in oil prices hurts the inflows to Canada and eventually their fiscal target.

On the dollar front, the US dollar index (DXY) has witnessed a dead cat bounce and has jumped near 98.00 on weak Asian markets.