Heading into the weekend, the US dollar managed to maintain its strength for several consecutive sessions but the momentum was seen fading slightly in the New York session yesterday.
Limiting some further strengthening for the US dollar, the US 10-year treasury yield was seen retreating slightly from the 4.73% level, the highest reached in 8 months.
With no focus on economic data on Thursday, investors remained cautiously awaiting the US (US) NFP employment data report to be published today (Friday).
The market expects weak job growth in December at around 164,000 compared to 227,000 the previous month.
Average hourly earnings are also expected to decline to 0.3% from 0.4% while the unemployment rate is forecast to remain at 4.2%.
Accompanying the US jobs report, the Canadian jobs report will also be published at the same time.
Canada's job growth in December is expected to slow while the unemployment rate is likely to rise.
In addition to economic data that is the focus of the Federal Reserve (Fed), speculation about Donald Trump's tariff plans remains a driver of the market at the moment.
Boston Fed President Susan Collins sees uncertainty over the economic outlook requiring the central bank to move cautiously in cutting interest rates.
Meanwhile, Philadelphia Fed President Patrick Harker still expects interest rate cuts to continue with steps that are appropriate to the current situation.
Kansas City Fed President Jeff Schmid believes interest rates are getting closer to a level where the economy does not need restrictions or support, while Fed Governor Michelle Bowman said it is not too early to judge the new administration's policies that will be implemented.
