USD/CAD remains subdued around 1.3950 following improved crude Oil prices

USD/CAD appreciates as the commodity-linked CAD receives support from improved Oil prices.

Ukraine has launched British Storm Shadow cruise missiles into Russia on Wednesday.

Boston Fed President Susan Collins emphasized the importance of a cautious approach in making policy decisions.

USD/CAD retraces its recent gains from the previous day as the commodity-linked Canadian Dollar (CAD) receives support from the improved crude Oil prices amid rising fears of supply disruption amid geopolitical tensions. The pair trades around 1.3960 during the European session on Thursday.

West Texas Intermediate (WTI) crude Oil price recovers recent losses registered in the previous session, trading around $69.50 per barrel at the time of writing. Oil prices found support after Ukraine launched British Storm Shadow cruise missiles into Russia on Wednesday, marking another deployment of Western weaponry against Russian targets. This followed Ukraine's use of U.S. ATACMS missiles the day before. 

Meanwhile, the Canadian Dollar may gain support as expectations for a deeper-than-usual interest rate cut by the Bank of Canada (BoC) in December have diminished. Following hotter-than-expected inflation data on Tuesday, markets are now pricing a nearly 26% probability of a 50-basis-point (bps) rate cut by the BoC in December, down from 37% before the CPI release.