CAD Rallies on Oil Price Gains, Trumps USD Strength

The Canadian Dollar (CAD) has been trading near its two-month high against the US Dollar (USD), thanks to higher oil prices and upbeat employment data in Canada.

The USD/CAD pair is consolidating its recent losses, which reached a two-month low last week. However, traders are being cautious due to mixed fundamental factors and uncertainty surrounding the upcoming US inflation figures.

Oil prices have been rising due to supply concerns fueled by the ongoing US-Iran standoff, as well as restrictions on shipping through key trade routes such as the Bab el-Mandeb Strait.