The Canadian Dollar (USD) is a little firmer on the session but it is lagging its commodity peers (AUD, NZD) and the spot market is still essentially range trading and awaiting developments, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CAD is trading marginally higher

"News reports indicate that the Canadian government is asking Canadian financial institutions to help in combating the fentanyl trade as it bolsters efforts to address the trafficking issue and satisfy White House demands to tighten up the border."

"Spot is drifting a little lower but the drop in the USD is hardly decisive or significant from a short-term technical point of view. The USD is maintaining the mild upward bias established after last Friday’s low but momentum is weak and the intraday range is holding within yesterday’s range at this point."

"That may tilt risks towards a renewed dip, if sustained through the close, however. Support is 1.4180/90. Resistance is 1.4250/55."