• USD/CAD enters a bullish consolidation phase near a one-month top set on Thursday.
• Reduced bets for a 50 bps Fed rate cut boost the USD and lend support to the major.
• Bullish Oil prices underpin the Loonie and cap the pair ahead of the key US NFP report.

The USD/CAD pair struggles to capitalize on the previous day's strong move up to a one-and-half-week top and oscillates in a range around mid-1.3500s during the Asian session on Friday. The downside, however, remains cushioned in the wake of the near-term bullish sentiment surrounding the US Dollar (USD) and ahead of the release of the crucial US monthly employment details. 

The incoming US macro data provided evidence of a resilient labor market and suggested that the economy remained on a solid footing in the third quarter, which forced investors to further scale back their bets for a more aggressive easing by the Federal Reserve (Fed). This, in turn, assists the USD Index (DXY), which tracks the Greenback against a basket of currencies, to stand tall near a one-month peak touched on Thursday and turns out to be a key factor acting as a tailwind for the USD/CAD pair. 

Furthermore, expectations for a bigger interest rate cut by the Bank of Canada (BoC) weigh on the Canadian Dollar (CAD) and offer additional support to spot prices. That said, escalating Middle East tensions keep Crude Oil prices elevated near a one-month top, which is seen underpinning the commodity-linked Loonie and capping the upside for the USD/CAD pair. Traders also prefer to move to the sidelines ahead of the official US jobs data, due later during the North American session.