The U.S. dollar edged higher against its Canadian dollar on today, but gains were expected to remain limited as investors turned to this week’s highly-anticipated U.S. inflation data.
USDCAD was up 0.12% at 1.2594 at 13:30 GMT.
Market participants were keeping an eye this week’s U.S. inflation data for further clues on how fast the Federal Reserve will raise interest rates this year.
The greenback had strengthened broadly after the U.S. Congress passed a two-year budget agreement early Friday morning, ending a brief government shutdown.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
Government activities were temporarily shut down when a midnight deadline to pass the U.S. budget deal was missed on Thursday due to a prolonged speech by Senator Rand Paul, who said that the bill would “loot the Treasury.”
Meantime, the commodity-related Canadian dollar benefited from a rise in oil prices, after last week’s steep losses.
The loonie was fractionally lower against the euro, with EURCAD at 1.5425.