CAD holds trading range around 1.3950 ahead of CPI - Scotiabank

The Canadian Dollar (CAD) continues to pivot around the mid-1.39 point as investors await signs on how US/Canada trade relations are going to evolve and the impact that will have on Canada's domestic prospects, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Momentum is pretty week on the intraday and daily charts

"Immediate focus today falls on today on the April CPI report (the street and Scotia anticipate a 0.2% M/M decline in headline prices). Inflation is expected to fall sharply in Y/Y terms--to 1.6%, from March's 2.3%. Core measures of inflation are forecast to remain unchanged from March, however, at 2.9% (Median) and 2.8% (for the Trim measure)."

"Spot is holding a relatively tight range just under the 1.40 point (200-day MA at 1.4024) as the market consolidates the nudge higher in the USD from 1.38 last week. Momentum is pretty week on the intraday and daily charts, which suggests more, broad range trading in the short run between 1.38/1.40. Intraday support is 1.3910/15."