Despite little Canadian data in the pipeline, the loonie is faring quite well on Monday during a bout of risk appetite. The loonie is up against all major foreign currencies. The Canadian dollar is up 0.0049 against the euro, with the cross on a gradual increase overnight. The Canadian dollar is also up 0.0081 to session highs of 0.5209 against the pound sterling, after initially turning higher at 3:30 a.m. EST. The Canadian dollar is up 0.0128 to 1.2481 against the Australian dollar and up 1.09 points to 82.28 against the yen. Most notably, the Canadian dollar was up 0.0108 to 0.8357 against the U.S. dollar, but significantly lower from session highs of 0.8407. At 10 a.m. EST, markets will receive the Institute for Supply Management (ISM) manufacturing survey. With the median forecast for a 41.5 reading in October, RBC Capital Markets chief FX technical analyst George Davis wrote that foreign exchange reaction on the data will depend on equities and commodities. "A rally in equities/commodities should decrease risk aversion and send the USD lower, while weakness in equities/commodities should increase risk aversion and cause the USD to rally. Given the bearish trend reversal that took place in USD/CAD below 1.2289 last week, we are expecting the pair to attempt to test the 1.1748 support level sometime this week," he wrote in a research note. Equity futures are pointing to a modestly weaker open, with contracts on the Dow Jones industrial average down 15 points to 9285 and S&P futures down three points to 964.30. Commodities are generally lower, with West Texas Intermediate (WTI) crude oil down $1.72 per barrel $66.09. CAD/USD up 0.0108 to 0.8357. CAD/EUR up 0.0049 to 0.6527. CAD/JPY up 1.09 to 82.28. CAD/GBP up 0.0081 to 0.5209. CAD/AUD up 0.0128 to 1.2481.

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