The USD/CAD pair finds some support near the 1.4000 psychological mark on Tuesday and for now, seems to have stalled its retracement slide from the highest level since May 2020. Traders, however, remain on the sidelines and keenly await the release of Canadian consumer inflation figures before placing fresh directional bets.The headline Canadian (CPI) is estimated to rise by 0.3% in October and the yearly rate is anticipated to have increased from 1.6% in September to 1.9%. A softer-than-expected reading will reinforce market bets for another jumbo interest rate cut by the Bank of Canada (BoC) in December. This, in turn, might continue to weigh on the Canadian Dollar (CAD) and assist the USD/CAD pair to resume its recent well-established uptrend witnessed over the past two months or so.Heading into the key data risk, signs that supply tightness was easing keep a lid on the overnight recovery in Crude prices from over a two-month low and undermine the commodity-linked Loonie. Furthermore, expectations that US President-elect Donald Trump’s policies will boost inflation and limit the scope for further interest rate cuts by the (Fed) revive the (USD) demand. These turn out to be key factors acting as a tailwind for . Meanwhile, the aforementioned fundamental backdrop favors the USD bulls and suggests that the path of least resistance for the currency pair remains to the upside. Hence, any immediate market reaction to strong Canadian CPI print might still be seen as a buying opportunity and is more likely to be short-lived. Bullish traders, however, need to wait for sustained strength and acceptance above the 1.4100 mark before placing fresh bets and positioning for any further appreciating move.More By This Author:Japanese Yen Trims A Part Of Intraday Gains; USD/JPY Shows Resilience Below 154.00 GBP/CAD Price Prediction: Vulnerable To More Downside As Bears Hunt Targets GBP/JPY Declines As Stronger Growth Data From Japan Lifts The Yen
USD/CAD Trades With Positive Bias Above 1.4000, Looks To Canadian CPI For Fresh Impetus
