USD/CAD climbs above 1.2700 as USD continues to gather strength ahead of NFP

USD/CAD started to push higher during the European trading hours.
US Dollar Index advances to fresh multi-month highs near 92.00.
Investors await February Nonfarm Payrolls report from the US.

Eren Sengezer FXStreet

The USD/CAD pair dropped below 1.2600 on Thursday but staged a sharp recovery to close the day in the positive territory. With the greenback preserving its strength on Friday, the pair continues to push higher and was last seen trading at 1.2715, gaining 0.4% on a daily basis.

Surging crude oil prices on Thursday provided a boost to the commodity-sensitive CAD and weighed on USD/CAD. After the OPEC+ agreed to keep the oil output unchanged, the barrel of West Texas Intermediate gained nearly 5%. Although the WTI is up more than 1% and trading at its highest level in more than a year near $65, USD/CAD preserves its bullish momentum on the back of broad USD strength.

Focus shifts to US NFP report

FOMC Chairman Jerome Powell downplayed the US bond market turmoil and the 10-year US Treasury bond yield rose more than 5%. Consequently, the US Dollar Index (DXY) jumped to a fresh multi-month high and extended its rally on Friday. At the moment, the DXY is up 0.4% near 92.00.

Later in the session, the US Bureau of Labor Statistics will publish the February Nonfarm Payrolls (NFP) report.

Previewing the NFP report, "the dollar has room to rise in case of a figure that only meets estimates with 182,000," said FXStreet analyst Yohay Elam. "A surge of over 250,000 would already serve as a bigger booster. Markets would assume that quick hiring even before the reopening means a rapid return to normality."

Nonfarm Payrolls Preview: Dollar booster? Three expectation downers pave way for upside surprise.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2717
Today Daily Change	0.0050
Today Daily Change %	0.39
Today daily open	1.2667

Trends
Daily SMA20	1.2664
Daily SMA50	1.2713
Daily SMA100	1.2861
Daily SMA200	1.3113

Levels
Previous Daily High	1.2694
Previous Daily Low	1.2575
Previous Weekly High	1.273
Previous Weekly Low	1.2468
Previous Monthly High	1.287
Previous Monthly Low	1.2468
Daily Fibonacci 38.2%	1.2649
Daily Fibonacci 61.8%	1.2621
Daily Pivot Point S1	1.2597
Daily Pivot Point S2	1.2527
Daily Pivot Point S3	1.2478
Daily Pivot Point R1	1.2716
Daily Pivot Point R2	1.2764
Daily Pivot Point R3	1.2835

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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