USD/CAD spikes to fresh session tops, eyeing a move toward 1.25 handle

   •  Markets largely ignore today’s mixed US economic data.
   •  Surging US bond yields provide some respite for the USD bulls. 
   •  CAD further weighed down by Canada ADP report.

The greenback continued gaining some positive traction against its Canadian counterpart, with the USD/CAD pair inching back closer to the key 1.25 psychological mark.

After yesterday's post-BOC volatile swings, the pair held stable through the Asian/European session and finally broke out of its daily consolidative range during the early NA session. 

A modest US Dollar rebound, supported by a strong follow-through upsurge in the US Treasury bond yields and unaffected by today's mixed US economic releases, has been one of the key factors behind the pair's latest leg of uptick over the past hour or so.

The Canadian Dollar was further weighed down by disappointing ADP Canada National Employment Report that showed the domestic job market softened and lost 7,100 jobs in the month of December.

Traders now look forward to the weekly EIA US crude oil inventories data, which might influence demand for the commodity-linked currency - Loonie and provide some fresh impetus. 

Technical levels to watch

On a sustained move beyond the 1.25 handle, the pair is likely to head back towards testing 1.2535-40 supply zone before eventually darting towards 100-day SMA barrier near the 1.2585 region.

Alternatively, retracement back below 1.2435 immediate support might turn the pair vulnerable to slide back below the 1.2400 handle and head towards retesting the 1.2360-55 strong support.