CAD review

A rejuvenated greenback notched May 1 highs against the loonie near C$1.22, its strongest in more than two weeks. The U.S. currency's recent decline has given way to enticing levels to pare back exposure to outperformers such as the loonie. 

Fundamental catalysts loom for the loonie on Friday when area consumer inflation and retail sales come due. Forecasts point to more volatility for the loonie with annual inflation expected to slow to 1.0 percent from 1.2 percent, and growth in consumer spending forecast to slow to 0.3 percent from 1.7 percent last time.