USD/CAD jumps to fresh daily highs above 1.3130 on broad-based USD strength

• US Dollar Index moves closer to the 96 handle.
• WTI erases majority of Friday’s gains.

After easing below the 1.31 handle earlier in the day, the USD/CAD pair gained traction in the early NA session and advanced to a fresh session high of 1.3140. As of writing, the pair was trading at 1.3137, adding 0.4% on a daily basis.

The greenback’s decisive recovery on Monday seems to be the primary driver of the pair’s recent upsurge. The US Dollar Index, which gauges the US dollar’s value against a basket of six major currencies, gathered momentum with last Friday’s upbeat NFP and PMI reports helping the buck outperform its vials. Ahead of the ISM-NY Business Conditions Index and factory orders data releases from the U.S., the DXY is up 0.25% on the day at 95.85.

Additionally, a 0.8% daily advance witnessed in the 10-year US T-bond yield is providing an additional boost to the USD.

On the other hand, the commodity-sensitive loonie is feeling the pressure created by falling crude oil prices. The barrel of West Texas Intermediate, which gained 3.4% last week, was last down 2% on the day near $54.20.

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