USD/CAD clings to gains around 1.2575 region, focus shifts to Canadian jobs data

  • A modest USD rebound assisted USD/CAD to regain some positive traction on Friday.
  • Mixed performance in oil markets did little to influence the loonie or move the pair.
  • Investors look forward to Canadian monthly employment details for a fresh impetus.

The USD/CAD pair edged higher through the Asian session on Friday and was last seen hovering around the 1.2575 region, up 0.10% for the day.

The pair managed to regain some positive traction on the last trading day of the week and recover a part of the overnight losses. As investors looked past a stubbornly dovish Fed, the US dollar index staged a modest bounce from a near three-week low level of 92.00 and was seen as a key factor lending some support to the USD/CAD pair.

In the latest FOMC meeting minutes released on Wednesday, the Fed remained cautious and reiterated its commitment to extending monetary policy support until the US economic recovery was more secure. Adding to this, Fed Chair Jerome Powell said on Thursday that the stance would only shift after a few consecutive months of positive data.

That said, investors have been betting that a stronger economic recovery from the pandemic will force the Fed to raise interest rates sooner than anticipated. The optimistic outlook for the US economy was supported by the impressive pace of coronavirus vaccinations and US President Joe Biden's over $2 trillion infrastructure spending plan.

This, in turn, has been fueling speculations about a possible uptick in US inflation and raised doubts that the Fed will retain ultra-low interest rates for a longer period. Given that markets have already priced in a Fed lift-off by the end of 2022, the USD bulls now seemed to await a fresh catalyst before placing any aggressive bets.

Meanwhile, a mixed performance in oil markets did little to influence the commodity-linked loonie. The USD/CAD pair, however, lacked bullish conviction and so far, has been struggling to capitalize on the intraday gains as the focus remains on Friday's release of the monthly Canadian employment details, due later during the early North American session.

Technical levels to watch


Today last price 1.2573
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.2563
Daily SMA20 1.2542
Daily SMA50 1.2626
Daily SMA100 1.2714
Daily SMA200 1.2988
Previous Daily High 1.2627
Previous Daily Low 1.2558
Previous Weekly High 1.2647
Previous Weekly Low 1.2528
Previous Monthly High 1.274
Previous Monthly Low 1.2365
Daily Fibonacci 38.2% 1.2585
Daily Fibonacci 61.8% 1.2601
Daily Pivot Point S1 1.2539
Daily Pivot Point S2 1.2514
Daily Pivot Point S3 1.2469
Daily Pivot Point R1 1.2608
Daily Pivot Point R2 1.2652
Daily Pivot Point R3 1.2677



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