Canadian Dollar jumps above 1.3600 on rising crude oil prices

The USD/CAD pair loses ground to near 1.3630 during the early Asian session on Thursday. The Canadian Dollar (CAD) gathers strength against the Greenback amid a jump in oil prices. Traders will take more cues from the US weekly Initial Jobless Claims reports later on Thursday. 

The escalating US-Iran conflict and potential supply disruptions in the Strait of Hormuz boost crude oil prices and provide some support to the commodity-linked Loonie. It is worth noting that Canada is a major oil-exporting country, and high crude oil prices generally have a positive impact on the CAD. 

"We continue to expect volatility to stay elevated, but unless the conflict prompts a deeper global growth scare, oil support should help the loonie outperform European peers," said Monex Europe strategists. 

Nonetheless, the upbeat US economic data might help limit the US Dollar’s (USD) losses. The Institute for Supply Management (ISM) showed on Wednesday that the Services Purchasing Managers’ Index (PMI) rose to 56.1 in February versus 53.8 prior. This figure came in above the market consensus of 53.5. This report signaled robust economic activity and could underpin the USD.