The USD/CAD pair trades flat this morning. However, what might put some pressure on the Loonie are Canadian equity futures, which are pointing lower before the bell as market participants turned their focus to a fresh round of trade talks between the United States and China. These talks are beginning in Washington today, and there will be follow up sessions at a higher level later in the week.
In other news, a top aide to Canadian Prime Minister Justin Trudeau resigned unexpectedly on Monday amid allegations that Trudeau's office had pressured the former justice minister to help SNC-Lavalin Group Inc -a construction firm- to avoid criminal prosecution.
Technically speaking, the long-term chart of the USD/CAD is up, and the pair has not moved outside of the range of 1.3225 and 1.3325 in the last 12 days, with the exception of February 13th, where it fell to the 1.3200 handle and immediately came back to the range. The crude oil price is strong lately, supported by OPEC-led supply cuts, but the crude rally looks exhausted, which might put a floor on the USD/CAD pair. Key levels to watch today are 1.3240 as a support and 1.3265 as a resistance.
This Thursday and Friday, we might have some new catalysts for the Loonie. Wholesale trade sales and retail sales numbers will be published, and BoC governor Stephen Poloz will make a presentation on Thursday at noon.