USD/CAD lacks any firm direction and oscillates in a range through the Asian session on Monday. The uncertain Fed rate-hike path and a positive risk tone keep the USD bulls on the defensive. A modest downtick in Crude Oil prices undermines the Loonie and acts as a tailwind for the major. half of the European session. The US Dollar kicks off the new week on a subdued note and for now, seems to have stalled the post-US CPI positive move witnessed over the past two trading days.
Apart from this, a modest downtick in Crude Oil prices could undermine the commodity-linked Loonie and lend some support to the USD/CAD pair. This makes it prudent to wait for strong follow-through selling before confirming that last week's bounce from the 1.3570-1.3565 region has run its course and positioning for the resumption of the recent pullback from a multi-month high touched earlier this month.