• USD/CAD falls to near 1.3430 as robust labor demand in Canada.
• US BLS revision shows that monthly CPI for January grew by 0.2% against the reading of 0.3%.
• Oil prices eye more upside as Israel rejects ceasefire proposal.

The USD/CAD pair has come under pressure as the Canadian Employment data for January has outperformed expectations in the early New York session of Friday. Statistics Canada has reported a strong labor growth of 37.5K against expectations of 15K and upwardly revised December’s reading of 12.3K.

The Unemployment Rate surprisingly fell to 5.7% while investors anticipated it rising to 5.9% from the former reading of 5.8%. An upbeat labor market data would strengthen the argument by the Bank of Canada (BOC) for holding interest rates at their current level.

On the oil front, oil price aims to extend its rally above $76.5 as Israeli Prime Minister Benjamin Netanyahu rejected the ceasefire proposal due to unacceptable truce terms proposed by Hamas. This is expected to deepen tensions in the Middle East, which could disrupt oil supply. Lower oil supply results in higher prices. It is worth noting that Canada is the leading oil exporter to the United States, and higher oil prices support the Canadian Dollar