USD/CAD falling back ahead of Canadian CPI report this afternoon

At 1.30pm GMT the Canadian January CPI inflation report will be released. This is probably the most important release due out of North America this afternoon. The markets expect a rebound in the monthly data, from a prior reading of -0.3%, to around +0.4%. However, the annualised rate is expected to fall back to 3.3%, from 3.4% previously. There are a lot of components to this report, but those two are the headline expectations along with any corresponding shift in the core rate over both periods. Ahead of this release, the USD/CAD has been falling back from above 1.35 yet again. The reason for that is partly due to wider dollar weakness, especially versus the European currencies so far today. The USD/CAD closed in the US last night at 1.3491. The US dollar had peaked at around 1.3585 last week (on February 13) and since then it has been mostly tracking lower. The range seen so far today has been covered by 1.3472 to 1.3512. So, as you can see it is just now close to session lows, currently trading at 1.3476