Canadian Dollar Stuck in Neutral as Oil Prices Surge
The Canadian dollar traded flat on Monday as investors awaited key economic data from both Canada and the US. The US Dollar/CAD (USDCAD) exchange rate remained largely unchanged, opening at 1.3933 and closing at 1.3946.
Oil prices surged overnight, but retreated later in the day as hopes for a quick resolution to the Strait of Hormuz crisis faded. West Texas Intermediate (WTI) crude oil prices climbed 1.9% to $84.61 before falling back to $83.31.
The lack of market-moving economic data from either Canada or the US meant that there was little incentive for traders to take new positions, resulting in a quiet trading session. The Canadian dollar's upside remains constrained by the narrowing Canada-US interest rate differential and signs of renewed CAD demand as speculative short positions are unwound.