USD/CAD turns lower ahead of CPI report later today

As noted here yesterday, later today we have some important Canadian inflation data due to be released. At 1.30pm GMT the Canadian October Consumer Price inflation (CPI) report will hit the screens and it is expected to show priced rebounding last month and quite markedly too. The prospect of that was noted here yesterday too and it seems the Canadian dollar has assumed that is what will show up, because it has rebounded since yesterday afternoon. The USD/CAD set a new 4 year high yesterday, at 1.4103. It then fell back very close to the 1.40 handle (1.4004 the low), before later closing in the US at 1.4015. The range seen so far today has been covered by 1.4009 to 1.4029. Canadian CPI is forecast to rise by 0.3% last month versus a 0.4% decline in September. The annualised rate is forecast to rise by 1.9%, compared to 1.6%. So, in essence, anything above that and the 1.40 handle will surely crack, whereas a lower than expected reading could see the USD/CAD resuming its upward trend. The USD/CAD is currently trading at 1.4023