USD/CAD treads water above 1.4000 ahead of Canadian CPI data

• The US Dollar ticks up against the CAD, but remains trapped between 1.4000 and 1.4050.
• The Canadian CPI is expected to show that inflation pressures slowed down in October.
• US manufacturing activity and construction spending are expected to show uninspiring figures later on Monday.

 The Canadian Dollar holds marginal gains against a firmer US Dollar on Monday, but the USD/CAD remains trading back and forth within the last few days’ trading range, with downside attempts held above the 1.4000 level and bulls capped below 1.4050.

Most currency pairs are trading within recent ranges, with the US Dollar slightly favoured by the cautious market mood, as investors bid their time ahead of the release of a slew of delayed US data, which might shed some more light on the US economic outlook and the Federal Reserve’s next monetary policy decisions.

Canadian CPÎ is expected to have eased in October

The focus today is on the Canadian Consumer Prices Index (CPI) report. Consumer inflation is expected to have ticked up to 0.2% in October, from 0.1% in September, although the yearly rate is seen slowing down to 2.1% from the previous month’s 2.4% reading.

In the US, the New York Federal Reserve’s Empire State Manufacturing Index is expected to show that business conditions in the sector deteriorated moderately, to a 6.0 reading in November from last month’s 10.

 At a later time, the US Census Bureau will release the US Construction Spending from August, the first of a slew of delayed macroeconomic reports. August's data is expected to show a 0.1% decline following an identical contraction in the previous month.