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USD/CAD posts modest daily gains above 1.2550 after NFP

  • USD/CAD continues to move up and down in a narrow band.
  • Nonfarm Payrolls in US rose by 916,000 in March.
  • US Dollar Index posts small daily gains on rising T-bond yields.

The USD/CAD pair is trading in the positive territory in the early American session as rising US Treasury bond yields support the greenback. As of writing, the pair was up 0.15% on the day at 1.2562.

NFP report helps USD find demand

The data published by the US Bureau of Labor Statistics revealed on Friday that Nonfarm Payrolls (NFP) in March surged by 916,000, beating the market expectation of 647,000 by a wide margin. Additionally, February's print got revised higher to 468,000 from 379,000 and the Unemployment Rate declined to 6% from 6.2%.

The upbeat jobs report provided a boost to the US Treasury bond yields and the benchmark 10-year reference was last seen rising 0.45% at 1.725%. Reflecting the positive impact of rising yields on the USD, the US Dollar Index, which dropped to 92.80 area earlier in the day, stays in the positive territory around 93.00.

There won't be any other macroeconomic data releases in the remainder of the and US stocks markets will be closed due to the Easter holiday.

Technical levels to watch for

 

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