Canadian dollar starts week with slide January 11, 2021SharePrint The Canadian dollar is deep in red territory in the Monday session. Currently, USD/CAD is trading at 1.2767, up 0.63% on the day. On the fundamental front, it’s a quiet start to the week, with no economic data out of the US or Canada. The Bank of Canada released its Business Outlook survey, which is released on a quarterly basis. US dollar rebounds The US dollar is showing some newfound strength and this has continued on Monday, with the Canadian dollar down sharply. This is largely a result of higher US Treasury yields, which has resulted in a US dollar short squeeze and pushed the currency to higher levels. The US dollar index continues to move higher and reached a daily high of 90.71. The dollar index is putting pressure on a major resistance line at 91.00; a daily close above that line would likely extend the dollar short squeeze. With US yields continuing to move higher, investors have been in a forgiving mood despite a dreadful US nonfarm payrolls report on Friday. The US economy shed 140 thousand jobs in December, its worst performance since April, when Covid-19 shut down the economy and nonfarm employment plunged by an unimaginable 20 million jobs. If US yields continue to move higher, it could be a winning week for the US dollar.