The euro extended its early rally against its major counterparts in the early European trading on Friday amid risk appetite, as oil prices stabilized and investors await the all-important U.S. non-farm payrolls report due later in the day for clues about the timing of further rate increases.

After a blockbuster private-sector jobs report earlier this week, the official report from the Labor Department is expected to show that employment increased by about 195,000 jobs in February, down compared to January's 227,000. The unemployment rate is expected to dip to 4.7 percent from 4.8 percent.

Crude prices inched up, even as record U.S. crude inventories dampened optimism over the OPEC-led supply cuts.

The currency's gains were also driven by comments from the ECB President Draghi, who indicated little urgency to loosen the policy further in the wake of improved economic outlook in the currency bloc. His comments were viewed as a shift in the bank's stance, signaling no further rate cuts or long-term loan programs for now.

Figures from Destatis showed that Germany's exports recovered and import growth accelerated in January.

Exports advanced by more-than-expected 2.7 percent month-on-month in January, in contrast to a 2.8 percent fall in December. At the same time, imports grew at a faster pace of 3 percent after edging up 0.1 percent.

The currency has been trading in a positive territory in the Asian session.

The euro that closed yesterday's trading at 1.0706 against the franc and 1.4288 against the loonie advanced to 1.0745 and a session's high of 1.4335, respectively. On the upside, the euro is likely to find resistance around 1.09 against the franc and 1.46 against the loonie.

The euro spiked up to a 4-day high of 1.0618 against the greenback, 1-1/2-month high of 122.56 against the yen and near a 2-month high of 0.8731 against the pound, from yesterday's closing values of 1.0576, 121.56 and 0.8696, respectively. The next possible resistance for the euro may be located around 1.09 against the greenback, 125.00 against the yen and 0.89 against the pound.

The single currency firmed to a 4-month high of 1.5378 against the kiwi and a 5-week high of 1.4123 against the aussie, compared to Thursday's closing values of 1.5334 and 1.4092, respectively. If the euro rises further, it may find resistance around 1.44 against the aussie, 1.46 against the loonie and 1.55 against the kiwi.

Looking ahead, Canada and U.S. jobs data for February and U.S. Baker Hughes rig count data are set to be announced in the New York session.

At 2:00 pm ET, U.S. Federal Reserve monthly budget balance statement is set to be published.

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