Ella 
USD/CAD pares recent losses as the U.S. dollar (USD) attempts to move higher for a second consecutive day. In Asia on Monday, USD/CAD rose to around 1.3600. However, stronger crude oil prices may stem the Canadian dollar’s losses.
In Asia on Monday, WTI oil prices rose for the third consecutive trading day, rising to around $71.60. Crude oil prices rose after data released last week showed a degree of resilience in the U.S. economy. Strong U.S. jobs data on Friday played a major role in giving the labor market one of the few positives in the world’s largest fuel consumer.
U.S. nonfarm payroll employment increased significantly in November to 199,000, compared with 150,000 in October, exceeding expectations by 180,000. U.S. average hourly earnings (annual rate) remained at 4.0% in November, in line with expectations. The unemployment rate fell to 3.7% from the previous reading of 3.9%.
The strong jobs data sparked discussion about the Fed’s future path for monetary policy and how long it plans to keep interest rates at restrictive levels. This increased discussion has pushed U.S. bond yields upward, causing the dollar to strengthen. Market participants are currently focused on Tuesday’s U.S. consumer price index and Wednesday’s Federal Reserve interest rate decision for more information and potential market impact.
