The Canadian CPI is expected to decline by 0.2% to 1.1% year-on-year when it will be released on Friday. The USDCAD could move on the news, depending on what will happen during the next four trading days. I expect a small bounce from current levels before it resumes its corrective phase which could take it close to parity by the end of 2013.
In general I think Canada does a much better job with its finances than the US does, not saying they are great but I’ll buy the Canadian approach before I would even consider buying the US story. I know the majority hail Bernanke, but I think in a few years when even the less sophisticated traders understand the negative impact of his short-term approach the opinion will slightly shift.