USD/CAD Rebounds on US Dollar Recovery

The US dollar rebounded from its opening losses against the Canadian dollar on Monday, paring earlier losses as it recovered from a bearish gap.

USD/CAD rebounded from an intraday low of 1.4070 to trade around 1.4114 at the time of writing.

The pair holds above the 50-day and 100-day Simple Moving Averages (SMAs), keeping the near-term bias constructive, according to technical analysis.

Despite Monday's decline in oil prices, the Loonie has received only limited support from higher Oil prices since the US-Iran war began, as USD/CAD remains driven mainly by US Dollar flows and monetary policy expectations amid heightened energy-driven inflation risks.