The Canadian dollar (Currency:CAD) is making progress on the global FX landscape as equity markets and other risk-on assets advance. The pound to Canadian dollar exchange rate is unchanged at 1.5625 at 12:45 in London. The euro to Canadian dollar exchange rate is 0.09 pct in the blue at 1.2306. The US dollar to Canadian dollar exchange rate is 0.23 pct lower at 1.0030. Despite things going well for the bulls thus far today, "we remain a bit sceptical that market expectations can be fully met today. USD/CAD seems to be in agreement, with funds starting to show some tentative signs of finding a foothold in the par area – close to the base of the downward-sloping channel in place since June," says Shaun Osborne at TD Securities. The Canadian bank look for good support in the 0.9950/1.00 area near-term and for spot to quickly retest 1.0100/25 if the ECB disappoints. "We prefer to look for chances to buy USD," says Osborne. Looking at the broader picture we note that Canadian data trends have tended to disappoint over the past few weeks, rendering the issue of BoC policy tightening moot. That said there are as of yet still no indications that we will see any action coming out of the Bank of Canada. "With growth and inflation trends in check and no fresh information to help distinguish the CAD from the USD at the moment, the CAD is tending to trade in a relatively narrow range against the "big dollar" for now," say TD Securities.

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