- USD/CAD locks in daily gains on Monday in the early European trading hours.
- US Dollar Index cools off few pips above the high of 92.80.
- The Canadian dollar weighs down by weaker commodity prices, dismal economic data.
USD/CAD extends the previous session’s gains in the early European session. The pair hovers in a very narrow trade band with a neutral stance.
At the time of writing, USD/CAD is trading at 1.2558, up 0.05% for the day.
The US Treasury yields climb higher on Monday following the Labor Department’s jobs report, which came better-than-expected. The US economy added 943k nonfarm payrolls (NFP) in July, much above the market forecast of 870k.
Investors shrugged off fears about the spread of the Delta variant of COVID-19 as the hiring for the month of July increased, which showcased improved labor market conditions.
On the other hand, the Canadian dollar was weighed down by the latest Ivey Purchasing Managers Index (PMI) fell to 56.4 in July from 71.9 in the previous month.
Oil prices plunged about 2% on Monday amid the rising US dollar and concerns over the demand outlook on the renewed coronavirus infections concerns.
As for now, traders are waiting for Canadian Housing Starts data and US JOLTS Job Opening to trade fresh trading impetus.