Canadian Dollar Holds Steady Amid Quiet Markets and Rising Oil Prices

The Canadian dollar traded quietly on Monday, holding onto its gains from last week. With little in the way of market-moving economic data from either Canada or the US, traders remained on the sidelines ahead of tomorrow's US CPI report.

Oil prices surged overnight as hopes for a reopening of the Strait of Hormuz faded, with WTI climbing 1.9% to 84.61 before retreating to 83.31 in New York. The narrowing Canada-US interest rate differential and signs of renewed CAD demand also constrained USDCAD upside.

The EURUSD was directionless, trading in a narrow band between 1.1531 and 1.1550, while GBPUSD hovered around 1.3490-1.3516 ahead of Wednesday's US inflation data. USDJPY, meanwhile, edged higher to 159.39.