USD/CAD sits near one-week tops, around 1.2125 ahead of US/Canadian jobs report

USD/CAD gained positive traction for the second consecutive session on Friday.
Stronger US macro data revived Fed taper talks and underpinned the greenback.
Bullish petroleum prices extended some support to the loonie and might cap gains.
The market focus remains on the US NFP report and Canadian employment details.
The USD/CAD pair edged higher through the primary half the ecu session and was last seen trading near one-week tops, round the 1.2125-30 region.

The pair built on the previous day’s positive move and gained some follow-through traction for the second consecutive session on Friday. The uptick allowed the USD/CAD pair to maneuver further faraway from multi-year lows, round the key 1.2000 psychological mark touched earlier in the week and was sponsored by a modest US dollar strength.

The greenback remained well supported by Thursday’s upbeat US macro releases, which indicated that the US recovery is gathering pace. The stronger data also fueled speculations that the Fed may bring forward the timeline for tapering its bond purchases. This, in turn, pushed the US Treasury bond yields higher across the board.

Meanwhile, the newest developments kept a lid on the recent optimism, which was evident from a softer risk tone. This was seen as another factor that acted as a tailwind for the safe-haven greenback. That said, the recent bullish run in oil prices underpinned the commodity-linked loonie and might cap gains for the USD/CAD pair.

Moreover, investors may additionally refrain from placing aggressive bets, rather like better to serve the sidelines before Friday’s release of the closely watched US monthly jobs data. The US NFP report are going to be one among the foremost important pieces of economic data that might set the tone for the upcoming FOMC meeting later this month.

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