USD/CAD hovers around 1.3800, highest since August 6 as traders look to Canadian CPI report

Source Fxstreet
  • USD/CAD attracts buyers for the tenth straight day and draws support from a combination of factors.
  • Bets for smaller Fed rate cuts assist the USD to preserve its recent strong gains to a two-month high.
  • Weaker Oil prices undermine the Loonie and act as a tailwind for the pair ahead of the Canadian CPI.

The USD/CAD pair trades near its highest level since August 6 during the Asian session on Tuesday, with bulls making a fresh attempt to build on the momentum beyond the 1.3800 round-figure mark.

The US Dollar (USD) stands tall near a two-month high amid expectations for a less aggressive policy easing by the Federal Reserve (Fed) and bets for a regular 25 basis points (bps) rate cut in November. This assists the yield on the benchmark 10-year US government bond to hold steady above the 4% mark and continues to offer some support to the buck, which, in turn, is seen as a key factor pushing the USD/CAD pair higher for the tenth straight day. 

Meanwhile, a report on Monday suggested that Israel will not attack Iran’s oil and nuclear facilities. Moreover, a fall in China's oil imports for the fifth straight month raised concerns about weak demand in the world's top importer. Adding to this, OPEC lowered its 2024 and 2025 global oil demand forecasts. This leads to a further decline in Crude Oil prices, which undermines the commodity-linked Loonie and lends additional support to the USD/CAD pair. 

The aforementioned factors, to a larger extent, overshadow Friday's upbeat Canadian jobs data, which forced investors to pare bets for a larger rate cut by the Bank of Canada (BoC). Traders now look forward to the release of the latest Canadian consumer inflation figures, due later during the North American session. This, along with the Empire State Manufacturing Index and Fedspeak, will influence the USD and provide some impetus to the USD/CAD pair.

Economic Indicator

Consumer Price Index (YoY)

The Consumer Price Index (CPI), released by Statistics Canada on a monthly basis, represents changes in prices for Canadian consumers by comparing the cost of a fixed basket of goods and services. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.

Read more.

Next release: Tue Oct 15, 2024 12:30

Frequency: Monthly

Consensus: 1.8%

Previous: 2%

Source: Statistics Canada

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
Bitcoin Price Forecast: Persistent ETF inflows, easing Middle East tensions lift risk appetiteBitcoin (BTC) extends its gains, trading above $64,800 at the time of writing on Thursday, breaking above the key resistance zone. Institutional demand supports BTC price action with spot Exchange Traded Funds (ETFs) recording a third consecutive day of inflows so far this week.
Author  FXStreet
Aug 06, Thu
Bitcoin (BTC) extends its gains, trading above $64,800 at the time of writing on Thursday, breaking above the key resistance zone. Institutional demand supports BTC price action with spot Exchange Traded Funds (ETFs) recording a third consecutive day of inflows so far this week.
placeholder
Gold Price Forecast: Gold May Break $4,500 as Fed Rate-Hike Expectations Continue to CoolAs of the European session on August 17, gold prices (XAUUSD) were trading above $4,400, up about 0.7% on the day and reaching an intraday high of $4,416.43, extending last Friday's gains
Author  TradingKey
Aug 17, Mon
As of the European session on August 17, gold prices (XAUUSD) were trading above $4,400, up about 0.7% on the day and reaching an intraday high of $4,416.43, extending last Friday's gains
placeholder
WTI rises to near $85.00 amid escalating US-Iran tensionsWest Texas Intermediate (WTI) oil price extends its gains for the fourth consecutive day, trading around $84.80 per barrel during the Asian hours on Wednesday.
Author  FXStreet
Yesterday 02: 03
West Texas Intermediate (WTI) oil price extends its gains for the fourth consecutive day, trading around $84.80 per barrel during the Asian hours on Wednesday.
placeholder
US Treasury Department to buy back more longer-term bondsThe US Treasury Department said on Wednesday that it will buy back more of its longer-term bonds, in an effort to curb a sharp increase in borrowing costs, the Wall Street Journal reported.
Author  FXStreet
6 hours ago
The US Treasury Department said on Wednesday that it will buy back more of its longer-term bonds, in an effort to curb a sharp increase in borrowing costs, the Wall Street Journal reported.
Related Instrument
goTop
quote