Canada CPI in Focus as Oil Prices Soar on Middle East Tensions

Markets are turning to Canada's August CPI release after US inflation data met expectations and prompted limited FX reaction.

The backdrop is continued US price pressure ahead of the Fed's rate decision on Wednesday, while JPY strength has coincided with CHF softness against USD as carry trade flows shift.

USD/CAD edged higher in Asian trading and hovered near 1.3880 (R1), with the pair seen as rangebound but retaining bullish bias; a clear break could open 1.3990 (R2), while a drop through 1.3730 (S1) would point to 1.3550 (S2).

Oil rebounded in Asia after a Friday pullback, as fresh strikes on Saudi energy infrastructure and attacks near the Strait of Hormuz revived supply concerns.