The U.S. Dollar fell for a two month low against the Looney in the previous session, just a pip above its lowest level against the Lonnie, after a hawking session that was brought by the comments from the Bank of Canada Governor Stephen Poloz.
The Senior Deputy Governor, Carolyn Wilkins of the Bank of Canada stated on Monday the North American first-quarter growth had been impressive that sign of economic growth was broadening would lead the central bank to consider whether current low rates would still be required.
Although there are many analysts who expect the bank to start raising rates next year, the markets are now in a 72 percent chance of a hike by the end of 2017 followed by Wilkin's speech.
Speculators have more than 120,000 short contracts on the Canadian dollar, with net short bets in that is still in the record high, this was according to the data from the Commodity futures Trading Commission and Reuters.
The Dollar however slipped down against a basket of currencies ahead of the start if the Fed’s June policy meeting, as the euro inched higher, staying just above $1.12.
The Fed is widely expected to raise interest rates after its meeting that is set to end this week, investors’ attention on the hints on whether there will be a hike in the months to come.