USD/CAD rebound hits a road block above 1.36

The weaker Canadian inflation data released yesterday was covered here at the time. The spike above 1.36 that data delivered a rise to 1.3617. Well, that was the extent of the move and the US dollar stalled ahead of an identified previous top, at 1.3623. The USD/CAD later drifted back into the US close, where subsequently ended that session at 1.3598. So far today it has not yet made it back above that 1.36 handle,  holding a range until now covered by that US closing level and a low at 1.3584. The failure to hold a break above 1.36 seen yesterday is surely symptomatic of what the markets expect from the Fed this evening and not immediately the prospect of further rate cuts from the Bank of Canada. However, take the first one away from the second and there is the potential for the US dollar to react positively again. The USD/CAD is currently trading at 1.3591