The Canadian Dollar (CAD) is marginally higher on the session but is lagging its G-10 commodity peers somewhat, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Spot losses may steady around 1.3728

"The CAD is up 0.1% on the day so far while the AUD and NZD are both posting gains of around 0.4% and sit near the top of the major currency overnight performance table amid firmer global risk appetite (and strength in regional FX following a firmer than expected CNY fix from the PBoC earlier).

"Crude prices have steadied today but sharp losses this week may be a headwind for the CAD while the recent narrowing in US/Canada spreads has also stalled. USD/CAD fair value has edged a little lower to 1.3618 today but trade uncertainty may see the CAD struggle to close the gap on its equilibrium estimate unless the USD sell-off accelerates. The July Ivey PMI (reported at 53.3 in June) is released at 10ET."

"USD/CAD has given back about half of its late July rally and spot is steadying around the 50% Fibonacci retracement support at 1.3728 in early trade. Early price action suggests spot losses may steady around this point in the short run. Friday’s big, USD-bearish reversal in price action suggests more downside movement remains possible, if not likely, however. Intraday resistance is 1.3775/00."