It's Canada in focus on the data front at 13.30 GMT with the latest CPI release
We've seen a lot of oil price based weakening of the loonie in recent times and USDCAD ,coupled with general US$ demand is flirting with a break of 1.4000 res/offers
Now we wait to see whether the latest inflation data can take it through or trigger a retreat
Here's the expectations:
Currently 1.3958 we've got to consider the thin liquidity conditions and caution is advised.
High so far has been 1.3971 ahead of good supply between 1.3980-1.4000 having held 1.3900 on the earlier move lower. Full order board here
Technicals are supportive overall but close to an over-bought scenario in many time frames
1.3777 is yesterday's low with 1.4003 on the topside flagging the May 2004 high, then 1.4085 and 1.4100
I reckon a weak number will see further rallies but prepare to fade, while a stronger than expected reading could trigger a substantial retreat
We'll find out soon enough
