USD/CAD continues its winning streak that began on July 17, trading around 1.3820, reaching 14-week highs during the European session on Thursday. The Canadian Dollar (CAD) faced challenges as the Bank of Canada (BoC) lowered interest rates by 25 basis points to 4.5% for the second consecutive meeting on Wednesday, citing progress in reducing inflation.BoC members emphasized that excess supply and a cooling labor market justified their decision to cut rates, aiming to stabilize consumer prices at 2% by 2025. The reduced borrowing conditions are anticipated to alleviate inflationary pressures by lowering mortgage rates and housing costs.Additionally, the lower crude Oil prices put pressure on the Loonie Dollar as Canada is the biggest crude exporter to the United States (US). West Texas Intermediate (WTI) Oil price continues to decline for the sixth successive session, trading around $77.00 per barrel during the European hours on Thursday. Crude Oil prices are under pressure due to negative sentiment in global stock markets affecting risk assets.Moreover, Sluggish economic activity in China, the largest crude importer, has added further downward pressure on Oil prices. China’s Q2 growth was 4.7%, the weakest increase since early 2023. A surge of optimism surrounding potential ceasefire negotiations between Israel and Hamas has eased the threat of supply disruption, which weakens the prices of black Gold. Israeli Prime Minister Benjamin Netanyahu has hinted that a ceasefire agreementThe US Dollar might strengthen following recent PMI data indicating a quicker expansion in private-sector activity for July, which rose to 55.0 reading from the previous 54.8 reading. This has marked the highest reading since April 2022 and indicates sustained growth over the past 18 months. This data provides the Federal Reserve (Fed) with more flexibility to maintain its restrictive policy stance if inflation remains persistent.Traders await the US Gross Domestic Product (GDP) Annualized (Q2) data on Thursday and the Personal Consumption Expenditures (PCE) inflation data on Friday. These reports are anticipated to offer fresh insights into the economic conditions in the United States.More By This Author:GBP/JPY Dives To Near 199.50 As Traders Adopt Caution US Dollar Index Hovers Around 104.50 With A Risk-Off Sentiment EUR/USD Price Analysis: Inches Higher To Near 1.0900; Next Barrier At Four-Month Highs