USD/CAD hangs near multi-week lows, focus remains on US/Canadian jobs report

  • USD/CAD was seen consolidating in a range near multi-week lows on the last day of the week.
  • Bullish oil prices underpinned the loonie and capped the upside amid a subdued USD demand.
  • Rallying US bond yields acted as a tailwind for the USD and helped limit losses for the major.
  • Investors also seemed reluctant to place aggressive bets ahead of the US/Canadian jobs data.

The USD/CAD pair remained on the defensive through the first half of the European session and was last seen hovering near four-week lows, just below mid-1.2500s.

The recent bullish run in crude oil prices – to the highest level since November 2014 – continued benefitting the commodity-linked loonie and acted as a headwind for the USD/CAD pair. On the other hand, the US dollar was seen consolidating in a range and did little to impress bullish traders or provide any impetus to the major.

That said, rallying US Treasury bond yields – amid prospects for an early policy tightening by the Fed – helped limit any meaningful USD slide. This, in turn, was seen as a key factor that held traders from placing any aggressive bearish bets around the USD/CAD pair and led to a subdued/range-bound price action on the last day of the week.

Investors seem convinced that the Fed will soon begin tapering its bond purchases and raise interest rate in 2022. Apart from this, worries that the recent surge in crude oil/energy prices will stoke inflation pushed the yield on the benchmark 10-year US government bond to four-month tops, around the 1.60% threshold on Friday.

Market participants now await the release of the closely-watched monthly employment figures from the US and Canada. The popularly known NFP report will determine the Fed's next policy move and drive the greenback in the near term. Separately, Canadian jobs data would offer clues on the strength of the domestic economy. This, along with oil price dynamics, will influence the Canadian dollar and provide a fresh directional impetus to the USD/CAD pair.

Technical levels to watch


Today last price 1.254
Today Daily Change -0.0010
Today Daily Change % -0.08
Today daily open 1.255
Daily SMA20 1.2677
Daily SMA50 1.2628
Daily SMA100 1.2479
Daily SMA200 1.2515
Previous Daily High 1.26
Previous Daily Low 1.254
Previous Weekly High 1.2775
Previous Weekly Low 1.2594
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2563
Daily Fibonacci 61.8% 1.2577
Daily Pivot Point S1 1.2527
Daily Pivot Point S2 1.2504
Daily Pivot Point S3 1.2468
Daily Pivot Point R1 1.2587
Daily Pivot Point R2 1.2623
Daily Pivot Point R3 1.2646



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