Loonie trades near 10-week high vs. U.S. dollar

Monday's session has been calm so far, but the US dollar found itself trading lower once again.

The greenback came under renewed pressure on Monday with the pair was seen near ten-week lows, changing hands at around C$1.2920 and below the important psychological handle of C$1.30.

Traders have been reducing their US dollar exposure since the disappointing September payrolls and somewhat dovish FOMC minutes, which led to a broad correction on US dollar pairs.

The Loonie was further supported by rising oil prices, with the WTI benchmark rising above the $50 mark and seen near three-month highs on Monday.

Later in the session, the Bank of Canada governor Stephen Poloz is due to deliver a speech titled "Integrating Financial Stability into Monetary Policy" at the National Association for Business Economics in Washington DC, but it should not spur any volatility as both US and Canadian banks are closed for national holidays.

Throughout the week, some important macro figures will be released, including US retail sales and CPI, which might spur trading activity, but as long as the pair remains below C$1.30, the short term bias is in favor of bears.