The Canadian dollar edged lower against its US counterpart on Monday after data showed that speculative bearish bets against the currency had risen to their highest level this year.

The Canadian dollar, known as the loonie, fell 0.1% to C$1.4210 per US dollar, or 70.37 US cents, after trading in a range between C$1.4176 and C$1.4217.

The currency touched a 14-month low last Wednesday at C$1.4248 per US dollar.

Data from the US Commodity Futures Trading Commission released on Friday showed that speculators increased their bets against the Canadian dollar to the highest level since December.

Net non-commercial short positions reached 146,792 contracts as of June 23, up from 132,901 contracts a week earlier, surpassing net short positions on the Japanese yen.

Canadian economic data in focus for Bank of Canada policy outlook

Canadian gross domestic product data, due Tuesday, is expected to show the economy expanded by 0.4% in April.

The figures could help shape expectations for the Bank of Canadas monetary policy path.

Bank of Canada Governor Tiff Macklem is scheduled to participate on Wednesday in a panel discussion at the European Central Bank Forum on Central Banking.

With the Bank of Canada holding in wait-and-see mode at a 2.25% policy rate, and viewed as more patient than the hawkish US Federal Reserve, the Canadian dollar is likely to remain hostage to oil moves and risk sentiment, strategists at Monex Europe said in a note.

Oil and the Strait of Hormuz weigh on Canadian dollar moves

Oil, one of Canadas most important exports, rose 2.3% to $70.79 a barrel after reciprocal attacks between the United States and Iran highlighted the fragility of their temporary peace agreement, while cautious hopes for a continued recovery in energy shipments through the Strait of Hormuz limited gains.

We believe a reliable reopening of the Strait of Hormuz would reduce investor demand for the US dollar as a safe haven, but would cap gains in the Canadian dollar through lower oil prices, Monex Europe strategists said.

The Canadian 10-year bond yield was little changed at 3.384%, remaining near the lower end of its trading range since March.