• USD/CAD’s rally picked up momentum after breaking over1.27.
  • US Dollar Index sees solid gains eyes 90.00.
  • Crude oil prices advance for the third straight day

The USD/CAD headed northward ahead of the US session.

DXY holds bullish momentum ahead of key US data

USD strength is boosting USD/CAD on Thursday. The 10-year US Treasury bond yield rallied over 8% on Wednesday as investors priced in more government spending following the Democratic majority in the US Senate.

Looking ahead, US Initial Jobless Claims data and the ISM’s Services PMI report with be in focus. Canadian International Merchandise Trade data from Canada will also be released.

Crude oil prices to push higher for the third straight day on Thursday capping losses in the commodity-sensitive CAD.

On Wednesday, US Senate Democratic Leader Chuck Schumer expressed his keenness to send out $2000 stimulus checks a move which could boost energy demand