USD/CAD inter-markets: hits fresh multi-month highs ahead of NFP and Canadian employment data

The USD/CAD pair extended its bullish break-out above 200-day SMA and jumped to the highest level since March, within striking distance of 1.3300 handle. 

Defying the recent up-move in WTI crude oil prices, which tends to benefit the commodity-linked currency - loonie, the pair continued with its upward trajectory from 50-day SMA support touched last week. Rising Fed rate-hike expectations has been the key factor for the pair's up-move and a sharp recovery in the US 10-year Treasury bond yields is further reinforcing market expectations of an eventual Fed rate-hike action by the end of this year. 

Moreover, retracing crude oil prices, from 4-month highs, has further contributed to pair's latest leg of up-move on Friday. Meanwhile, rising Canadian 10-year Treasury bond yields is indicative of flows moving out of the Canadian Dollar towards the greenback is further supportive of the pair's bullish trajectory. 

Going forward, today's employment details from the US and Canada will act as the next big fundamental triggers determining the pair's next leg of direction move. Special focus would be on the US monthly jobs report, NFP, which would help investors to evaluate the possibilities and timing of the next Fed rate-hike action, eventually driving the greenback in the near-term.