USD/CAD moves sideways around 1.2550 despite surging crude oil prices
- USD/CAD is trading in a relatively tight range on Friday.
- WTI gains traction, advances beyond $61 ahead of American session.
- US Dollar Index stays below 93.00 ahead of March jobs report.
The USD/CAD pair is fluctuating in a narrow band on Friday as the trading action remains subdued due to the Easter holiday. As of writing, the pair was up 0.1% on a daily basis at 1.2558.
Focus shifts to US NFP report
On Thursday, USD/CAD closed in the negative territory as the slumping US Treasury bond yields weighed heavily on the greenback. Reflecting the broad-based USD weakness, the US Dollar Index (DXY) lost 0.3% and close below 93.00.
Ahead of the US Bureau of Labor Statistics' Nonfarm Payrolls report (NFP), which is expected to show an increase of 647,000 in nonfarm employment, the DXY is moving sideways around 92.90. Nevertheless, the market reaction is likely to remain muted amid a lack of volume.
Nonfarm Payrolls Preview: Forecast from eight major banks for March jobs report.
On the other hand, crude oil prices are rising sharply following the 15th OPEC+ meeting. Although producers agreed to ramp up oil output gradually in the next three months, they preserved a cautious stance with regards to demand outlook. Currently, the barrel of West Texas Intermediate (WTI) is trading at $61.25, rising 3.07% on the day.
Technical levels to watch for