USD/CAD: The domestic calendar holds some risk for the Loonie – Scotiabank

USD/CAD trades little changed. Economists at Scotiabank analyze the pair’s outlook.

CAD could pick up a little support if inflation pressures remain elevated

Canada releases CPI data on Tuesday. These are expected to reflect an uptick in headline prices and sticky core inflation. Meanwhile, Wednesday’s minutes of the BoC’s last rate decision may underscore policymakers concern about slow progress on disinflation. 

The CAD could pick up a little support if inflation pressures remain elevated (but might also slip back, all else equal, if Retail Sales data Friday are soft, as the consensus estimate anticipates). 

The USD’s uptrend persists on the face of it, but gains have flattened out since the middle of last week, with the USD firmly capped in the mid-1.3500s. 

Support is 1.3510 and, stronger, at 1.3485 on the intraday chart.