A quieter trading day yesterday for the Loonie changed overnight with the USD/CAD pair trading in a 70-point range. Recently subdued oil prices spiked from 65.71 yesterday to 68.37 overnight, the Canadian dollar a commodity-linked currency made gains on the greenback. After last week’s events out of emerging markets, traders remained cautious as risk sentiment maintained elevated levels; ultimately aiding the USD, JPY, and CHF.
Market participants saw US import/export price indexes out this morning both miss expectation; imports accelerated while export waned. The most significant risk event for the loonie this week will be this Friday's CPI print expectations are for 1.3% in line with previous.
Key technical levels leading to these risks events will be the 1.3200 resistance level, and on the downside, supports can be seen at 1.3029 and 1.2987 respectively.