USD/CAD attempts to recover toward 1.2550 ahead of Canadian Job data

• USD/CAD consolidates on Friday after posting gains in four straight sessions.
• US dollar stands strong at 92.45 amid a fall in US Treasury yields.
• The Canadian dollar holds the ground on BOC optimism, key data eyed.

After posting substantial gains in the last four trading days, the USD/CAD pair consolidated gains in the Asian trading session on Friday and touched the multi-moth near 1.2550.

At the time of writing, USD/CAD is trading at 1.2541, up 0.06% for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, remains steady above 92.40. The softer economic data and lack of enthusiasm on the US reflation trade keep the gains limited or the greenback. 

The Weekly Initial Jobless Claims rose to 379K, above the market expectations at 350K. The reading suggested a  slower recovery in US labor markets.

Meantime, renewed coronavirus jitters access the globe raised concerns over the pace of economic recovery. This, in turn, added the attractiveness of the greenback. 

On the other hand, the Canadian dollar holds the ground on better economic data.

In addition to that, oil prices, one of Canada's major exports, extended losses for the fourth straight session following the consequences of the failed OPEC talks to put forward a new output deal.

Meanwhile, according to a Reuters poll of economists forecasted that the Bank of Canada (BOC) will taper its asset purchase again in its July 14 meeting backed by robust growth prospects. The loonie remained unaffected on the reports.

As for now, traders are looking for the Canadian Employment data and Participation Rate for June to gain some fresh trading impetus.

USD/CAD additional levels