With no domestic data ahead, external drivers will remain key influences on the direction of the market in the short run but downside potential for the CAD from here still looks limited. 

There are no clear signs from short-term price action that the USD rebound cannot extend a bit more but intraday price action has stalled in the low 1.38 area, with some minor congestion resistance doing enough to slow the USD recovery so far today. 

The USD has put in a solid gain over the week so far but the rebound looks no more than a consolidation after last week’s big, bearish reversal from 1.39 – which should still mark very stiff resistance for funds. 

Support intraday is 1.3790 and 1.3750.