USD to CAD has had an interesting ride so far today. The Canadian dollar started the morning weaker by about 0.3% as a somewhat subdued global sentiment was reflected in all asset classes with stocks retreating just slightly from record levels yesterday. But at 8.30 the US inflation figures for March came in at expected levels and the fear of runaway inflation forcing the Fed to act earlier than anticipated subsided. The US dollar immediately lost ground against all major currencies. That and the firming up of oil prices now have the Canadian dollar now trading up 0.2% from yesterday. As we have been pointing out, the exchange rate is going to be primarily driven by perception of central bank actions. On that front, there are a few speeches by Fed members tomorrow and Friday that will be scrutinized closely. Other than that, there is not a lot in terms of economic data that could move the exchange rate materially.
