Canadian inflation in the spotlight this afternoon-check out the USD/CAD

At 1.30pm GMT we will get some potentially important Canadian economic data. That is the January CPI (Consumer Price Index) and it is expected to show a slight increase on the previous level of consumer prices. The monthly rate is forecast to rise by 0.1%, compared to a 0.4% fall seen in December. The annualised rate is therefore also forecast to rise to 1.9%, from a prior rate of 1.8%. The core rate is forecast to rise to 2.5% from 2.4%. Ahead of this data the USD/CAD has been holding above 1.4150 (1.4151 the low) since collapsing from 1.4793 back on February 3. The USD/CAD closed last night at 1.4184 and the range seen so far today has been covered by 1.4178 to 1.4209. It is nearer the upper end of that range just now ahead of this data release. Looking at the daily chart on this one, it looks like it is still attempting to build a base at 1.4150 and if successful that might pave the way for more of a correctional move higher from here. Naturally, 1.4150 will need to remain intact for that to continue to play out. The USD/CAD is right now at 1.4202