- USD/CAD is trading in the positive territory above 1.3300 on Friday.
- Slumping crude oil prices weigh on commodity-sensitive loonie.
- US Dollar Index stays calm below 94.00 ahead of Nonfarm Payrolls report.
The USD/CAD pair staged a rebound after dropping to a fresh 10-day low of 1.3266 on Thursday with slumping crude oil prices hurting the commodity-sensitive loonie. As of writing, the pair was up 0.18% on the day at 1.3310.
Renewed concerns over an uneven recovery in the energy demand amid the rising number of coronavirus cases in Europe weigh on crude oil prices in the second half of the week. The barrel of West Texas Intermediate (WTI) lost more than 3% on Thursday and extended its slide on Friday to touch its lowest level in three weeks at $36.80. As of writing, the WTI was down 3.15% on the day at $37.30.
USD stays resilient against its rivals ahead of NFP report
On the other hand, the USD is capitalizing on the risk-averse market environment on Friday and help USD/CAD stay in the positive territory. Ahead of the US Bureau of Labor Statistics’ September Nonfarm Payrolls (NFP) report, the US Dollar Index is posting modest daily gains near 93.80.
Preview the NFP report, “we forecast a below-consensus 400K rise in payrolls, down from 1.4M in August, 1.7M in July and 4.8M in June,” said TD Securities analysts. “We expect the downtrend in the unemployment rate to stall, with relatively modest employment growth offset by a rise in the participation rate as active job searching among laid-off individuals picked up.”
A weaker-than-expected NFP reading could force Wall Street’s main indexes to suffer heavy losses and help the greenback preserve its strength.
Technical levels to watch for
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