• Firmer crude oil prices provide support to the Canadian Dollar.
• The US Dollar sheds some ground after posting solid gains at the end of the previous week.
• USD/CAD is technically neutral according to the daily chart, needs to break through 1.3610/20 area.

The FX board is all about the US Dollar (USD) giving up some of the gains achieved last week. The USD/CAD trades around 1.3585 in the American afternoon, bouncing modestly from an intraday low of 1.3570. Meanwhile, the Canadian Dollar (CAD) found near-term support in crude oil prices, as West Texas Intermediate (WTI) prices were up on Monday after the United States Energy Information Administration (EIA)increased its forecast prices for crude oil and petroleum products for the remainder of 2024 while reducing global production forecast in the second half of the year as a response to OPEC cuts. The black gold trades above $81.60 a barrel, up around $1 on the day.

Data-wise, Canada’s macroeconomic calendar has little to offer this week. The country will release the monthly Gross Domestic Product (GDP), which is expected to be confirmed at 0.4% MoM in January next Thursday. The report has a limited impact on CAD amid the delay between the period estimate and the actual release.