The CAD may slip a bit on lower headline inflation data but the elevated core prices will keep the BoC sounding relatively hawkish and limit CAD losses.

Trend signals are still reading flat to ever so slightly bearish for the USD, which suggests more range trading ahead – unless spot slips under key support at 1.3660 or moves back above resistance at 1.3770/1.3775.

Below 1.3660 should drive the USD back to the 1.34/1.35 range.