Canada kicks off the weeks central bank action tomorrow and the minnows from North America aren’t expected to spring any surprises. Adam’s just mentioned that the inflation jump has seasonal elements to it but as also seen in the States, it does look to have seen off falling inflation for now.
The order boards have been busy meanwhile with good interest on both sides.
Offers are seen from 1.0930, 40/45( stops), 50, 65, 75 and 1.1010
Bids from banks and hedge funds are down at 1.0890 with corp bids from 1.0850, 35, 25, 1.0800 (stops)
1.0950 is the closest level that needs a good beating for a move higher but if inflation does continue to rise then we could see the BOC using a more hawkish tone. At the moment I’ll still like to look at a short up at the 1.1000/40 area if inflation gathers pace.
USD/CAD daily chart 03 06 2014
