Firmer commodity prices and higher equity markets are CAD-positives that may be somewhat underpriced in the CAD currently.

The week ahead holds plenty of event risk – in the form of central bank meetings in the US, Europe and Japan – and with very little on the domestic data schedule, the CAD is liable to remain something of a range trade as it tracks the overall trend in the USD. 

Our week ahead model suggests a potential range of 1.3140-1.3400. The projection may overstate topside risks to some extent (I think the broader range ceiling is perhaps more like 1.3300/50) but there is clearly firm support for the USD on dips to the low 1.31s currently.