The USD/CAD pair posted modest gains on Monday and preserved its bullish momentum during the first half of the day on Tuesday. As of writing, the pair was trading at a fresh session high of 1.2593, gaining 0.26% on a daily basis. The broad-based USD strength on the back of rising US Treasury bond yields seems to be helping USD/CAD climb higher. Currently, the benchmark 10-year US T-bond yield is up 1% on the day at 1.685% and the US Dollar Index is rising 0.16% at 92.23.
Meanwhile, the commodity-sensitive loonie continues to have a difficult time capitalizing on rising crude oil prices. At the mıoment, the barrel of West Texas Intermediate (WTI) is rising 1% at $60.22. A stronger-than-expected reading could allow yields to push higher and provide a boost to the greenback. Earlier in the day, the monthly report published by the NFIB showed that the Business Optimism Index in the US improved to 98.2 in March from 95.8 in February.