• USD/CAD gains ground as the commodity-linked Canadian Dollar weakens on lower crude Oil prices.
• WTI price slips after Russia’s Novorossiysk port has resumed Oil loading operations following a two-day halt.
• CME FedWatch Tool indicates pricing in a 46% chance of a 25-basis-point Fed rate cut in December.

USD/CAD edges higher after registering modest losses in the previous session, trading around 1.4030 during the Asian hours on Monday. The pair advances as the commodity-linked Canadian Dollar (CAD) struggles amid lower crude Oil prices.

West Texas Intermediate (WTI) Oil price retreats after posting more than 2% gains in the previous session, trading around $59.30 per barrel at the time of writing. Crude Oil prices depreciate amid looming oversupply concerns.

Russia’s Novorossiysk port has resumed oil loading operations after a two-day shutdown triggered by a Ukrainian drone strike. Meanwhile, the IEA has warned that the global oil market could face a substantial surplus next year, potentially around 4 million bpd, as both OPEC and non-OPEC producers increase output amid weakening demand growth.

Traders expect the Bank of Canada (BoE) to hold steady on interest rates through the end of 2026 at a minimum, but that could change if economic conditions deteriorate further. The BoC Consumer Price Index (CPI) data for October is scheduled to be released later in the day.

The USD/CAD pair also holds gains as the US Dollar (USD) gains amid cautious remarks by US Federal Reserve (Fed) officials. Kansas City Fed President Jeffery Schmid said on Friday that monetary policy should “lean against demand growth,” adding that current Fed policy is “modestly restrictive,” which he believes is appropriate.

The CME FedWatch Tool suggests that financial markets are now pricing in a 46% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from the 67% probability that markets priced a week ago.