Loonie Holds onto Gains as US Dollar Struggles

The Canadian dollar is consolidating its gains from Friday's rally, as the US dollar continues to struggle after last week's disappointing non-farm payrolls (NFP) numbers.

The NFP report showed a loss of 23,000 jobs in July, far below expectations, and downward revisions to May and June only added to the dollar's woes. Fed Vice Chair for Supervision Michelle Bowman weighed in over the weekend, saying that current policy is well positioned to bring inflation down to target.

The Canadian dollar remains vulnerable to ongoing trade negotiations with the US, including President Trump's threat of 50% tariffs on Canadian exports beginning August 19. Oil prices also had an impact, nudging higher after news of the ongoing standoff between the US and Iran.