USD/CAD settled above 1.2100 and is testing the next resistance at 1.2130.
Economic data from the U.S will be back in the spotlight later today. On the monetary policy front, any policy chatter from the Bank of England will also need monitoring.
The Canadian dollar strengthened against its U.S. counterpart and all the other G10 currencies on Wednesday as oil prices rose and investors bet that the Bank of Canada would be more sensitive to rising inflation than the Federal Reserve. "Higher inflation in the U.S. will spillover into Canada's economy and place upwards pressure on Canadian CPI," said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada.