USD/CAD appreciates ahead of the Fed’s July Meeting Minutes due on Wednesday.
The US Dollar receives support from Ukraine-Russia peace hopes.
The Canadian Dollar fell after softer inflation data reinforced dovish expectations for the BoC’s policy outlook.
USD/CAD continues to gain ground for the second successive day, trading around 1.3870 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) gains ground ahead of the US Federal Reserve’s (Fed) Minutes for the July meeting. Traders will shift their focus to the Jackson Hole Economic Policy Symposium due on Thursday, with Fed Chair Jerome Powell’s speech for guidance on a September policy decision.
The Greenback receives support from further geopolitical developments. White House press secretary Karoline Leavitt announced on Tuesday that plans for a bilateral meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy are now underway, according to CNN.
US President Donald Trump said on Tuesday that there won’t be American troops on the ground to help enforce a potential peace deal in Ukraine. The terms of security guarantees are still being negotiated between the US, European partners, and Ukraine.
The USD/CAD pair faced challenges as the Canadian Dollar (CAD) weakened, as softer inflation data from Canada, released on Tuesday, boosted dovish sentiment surrounding the Bank of Canada’s (BoC) policy outlook. Canada’s Consumer Price Index (CPI) rose 1.7% year-over-year in July, compared to 1.9% in June. This figure aligned with expectations. Meanwhile, the CPI climbed by 0.3%, an uptick from the 0.1% increase seen in the previous month. The core CPI, which excludes volatile elements like food and energy, increased 2.6% YoY and 0.1% MoM.
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