Canadian Dollar Consolidates Below Mid-1.3800s Amid Oil Price Strength

Canadian Dollar prices have consolidated below the mid-1.3800s as oil strength offsets support for the US Dollar, which was bolstered by Friday's better-than-expected US Nonfarm Payrolls report.

The escalating US-Iran confrontation in the Strait of Hormuz has kept crude oil prices firm near their highest level since July 24, with this supporting the commodity-linked Loonie and offsetting the weak Canadian employment data from last week.

ING analysts note that while the Dollar should be doing better given high energy prices and an above-consensus August NFP reading, it's being held back by a still constructive investment environment, where global equity markets continue to perform well.