[ForexNews]

The CAD is again the top-performing currency on the day so far, albeit one that has so far seen relatively little volume with Asian and European activity curtailed due to the market holidays. Still, USD/CAD has eked out a marginal new low for the current move down and the underlying trend lower is strong and may be strengthening from a technical point of view. Firm commodity prices – with crude oil in particular firm again this morning – and global recovery hopes after the US posted its strongest jobs gain in three years on Friday will support the commodity currencies, we think. Of course, relatively firm fundamentals at home have gone a long way in bolstering the CAD’s recent performance and, if there is anything that could disturb the CAD’s ascent at the moment, it is perhaps the risk that the markets have priced the CAD to perfection – leaving it vulnerable to data disappointments. Data reports for Canada are few and far between this week, however, with only building permits and the Ivey PMI Wednesday before Friday’s employment report. This could be the release that makes or breaks the CAD’s run to par in the near term. Corporate and commercial buyers continue to soak up “bargain” USDs at or close to par, providing some cushion for funds and short term price action suggests some risk of a minor squeeze up at least from the overnight lows as our session gets underway.