(RTTNews) - The dollar consolidated its recent gains versus most other majors Monday morning, but hit the skids against its petro-linked Canadian counterpart as the price of oil continued to rise. Speculation that the US economy has improved to the degree the Federal Reserve may soon begin to unwind support measures has given the buck a boost versus the euro and yen in recent weeks. There will be few catalysts this week to drive the dollar much higher, and many traders will move to the sidelines to celebrate the Christmas holiday. No first-tier economic data is on tap from the US on Monday, leaving traders to focus on Canadian retail sales figures and movements in equities markets. The buck held most of its gains versus the euro, staying near 1.4350. On Friday, the dollar touched 1.4260, its highest level in since early September. The outlook for the euro area economy remains uncertain and deterioration in the labor market is a major concern, the European Commission said Monday. The dollar was drifting slightly higher versus the sterling after seeing some overnight weakness, holding within half a cent of Friday's 2-month high of 1.6051. Across the Pacific, the Bank of Japan maintained its economic assessment and said conditions in the economy are likely to improve further, although the pace of improvement would be moderate. In its monthly report for December, the BoJ said, "Japan's economic conditions are likely to continue improving, although the pace of improvement is likely to remain moderate for the time being." The buck saw little movement versus the yen, staying above Y90. Last week, the dollar was able to race away from November's 1995 low of 84.80. Crude prices edged higher Monday morning, supported by expectations that demand will rise as the global economic recovery takes hold. The dollar dropped to a weekly low of C$1.0545 against loonie, down sharply from near C1.0700. Oil prices have more than doubled from a yearly low near $35 a barrel.

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