- USD / CAD is rising for the second day in a row.
- The US Dollar DXY Index remains in positive territory above the 92.20 level.
- The focus of attention shifts to the US March CPI data.
The pair USD / CAD posted modest gains on Monday and maintained its bullish momentum through the first half of Tuesday. At the time of writing, the pair rises above the 1.2600 level, gaining 0.30% on the day.
DXY index gains traction on Tuesday
The Widespread USD strength, supported by rising US Treasury yields, appears to be helping USD / CAD extend the rally. Currently, the 10-year benchmark US Treasury yield is up 1% on the day at 1.685% and the DXY US Dollar Index is up 0.16% at 92.23.
In the meantime, The Canadian dollar, sensitive to commodity prices, continues to struggle to capitalize on rising crude prices. At the time of writing, a barrel of West Texas Intermediate WTI is up 1% at $ 60.22.
At the start of the American session, the US Bureau of Labor Statistics will publish its inflation report. The investors expect the core CPI consumer price index, which discounts volatile food and energy prices, to rise to 1.5% annually in March from 1.3% in February. A stronger than expected reading could allow yields to rise higher and provide a boost to the US dollar. Hours earlier, the monthly report published by the NFIB has shown that the business optimism index in the US improved to 98.2 points in March from 95.8 in February.
No macroeconomic data will be published on the Canadian economic calendar.
USD / CAD technical levels
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