USD/CAD flatlines right above 140 with US, Canadian data on tap

• The US Dollar consolidates gains above 1.4000, on track to close a three-week rally.
• Political uncertainty in Japan and France has been boosting the US Dollar across the board this week
• The Canadian Dollar suffers with Oil prices near the $60.00 level.
   

The US Dollar is standing comfortably at six-month highs above 1.4000 against the Canadian Dollar. The pair has been trading higher for the last thee weeks, before taking some rest ahead of the release of US consumer confidence data and Canada's employment figures.

The US Dollar has been the strongest performer this week, supported by the political uncertainty in France and Japan. The Canadian Dollar, on the contrary, has been under pressure as the trade deal between Israel and Hamas sent Oil prices tumbling.

Fed's Daly calls for further rate cuts

Earlier on Friday, San Francisco Fed President Mary Daly added some pressure on the US Dollar, anticipating further rate cuts in the coming months. Daly pointed out a "worrisome" deterioration of the labour market, while inflation, in her opinion, has come much less than feared.

Investors, however, are taking a cautious approach on Friday, awaiting Canada's employment report. The market consensus anticipates a 5K increase in net employment in September after a 65.5K decline in August. The unemployment rate, however, is expected to have ticked up to 7.2% from 7.1% in the previous month.

Later on, the US Michigan Consumer Sentiment Index is expected to show that confidence among American consumers fell further in October, amid worsening labour market conditions. The index is expected to have dropped to 54.2 from September's 55.1, and is likely to provide further reasons for the Fed's dove party.