The USD/CAD pair advanced to a daily high of 1.2107 in the early European morning but lost its traction ahead of the American session. As of writing, the pair was virtually unchanged on a daily basis at 1.2078. Earlier in the day, the broad-based USD strength allowed USD/CAD to push higher. The US Dollar Index (DXY), which fell sharply on the uninspiring US May jobs report, opened with a bullish gap on Monday. US Treasury Secretary Janet Yellen said over the weekend that a slightly higher interest rate environment would be a "plus for society's point of view and the Fed's point of view" and supported the DXY.

Meanwhile, after rising more than 4% last week, the barrel of West Texas Intermediate (WTI) touched its highest level since October 2018 at $69.97 and helped the commodity-related CAD stay resilient against its American counterpart. Currently, WTI is consolidating its gains around $69.50. There won't be any high-tier macroeconomic data releases from the US or Canada on Monday and USD/CAD is likely to continue to fluctuate in its daily range. On Wednesday, the Bank of Canada (BoC) will announce its Interest Rate Decision and publish its Rate Statement. In an interview with the Wall Street Journal in late May, BoC Governor Tiff Macklem noted that tapering was the right move for the Canadian economy and investors will look for fresh clues regarding the timing of the next hawkish policy step.