usdcadUSD/CAD is off the five-day highs of 1.2764, although remains strongly bid amid unabated US dollar’s demand and the weakness in oil prices. The US dollar receives doubt booster shots amid the ongoing surge in the US Treasury yields, as the optimism over additional stimulus coming from Biden’s presidency pushes inflation expectations higher.

Further, the safe-haven greenback also cheers the tepid risk sentiment, induced by the renewed tensions between the US and China over America’s latest move to improve ties with Taiwan.