USD/CAD drops sharply to 1.3370 as appeal for safe-haven bets diminish.
The USD Index is facing pressure ahead of US NFP data.
Fed officials need more confidence that a price stability will be achieved for rate-cut speculation.
The USD/CAD pair has dropped to near Thursday’s low around 1.3367 in the European session on Friday. The Loonie asset faces selling pressure as the US Dollar Index (DXY) has dropped sharply ahead of the United States Nonfarm Payrolls (NFP) data for January, which will be published at 13:30 GMT.
As per the estimates, US employers recruited 180K workers, which are lower than the former reading of 216K. The Unemployment Rate is seen increasing slightly to 3.8% from 3.7% in December.
A major focus will be on the Average Hourly Earnings data, which will set a fresh undertone for inflation. Monthly wage growth is seen rising moderately by 0.3% against 0.4% increase in December. The annual Average Hourly Earnings is expected to rise at a steady pace of 4.1%.
S&P500 futures have generated significant gains in the London session, indicating a significant improvement in the risk appetite of the market participants. The USD Index has tested territory below the crucial support of 103.00
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