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
Gold Price Forecast: PCE Data Weakens Fed Rate Hike Expectations, Can Gold Price Hold Steady at $4,000?As of today's Asian session (June 26), gold ( XAUUSD) prices fluctuated near $4,010. Yesterday, gold rebounded following the release of the PCE data, and market sentiment improved signifi
Author  TradingKey
9 hours ago
As of today's Asian session (June 26), gold ( XAUUSD) prices fluctuated near $4,010. Yesterday, gold rebounded following the release of the PCE data, and market sentiment improved signifi
placeholder
Australian Dollar edges lower to near 0.6900 on Fed hike bets The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
Author  FXStreet
18 hours ago
The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
placeholder
Gold Price Forecast: Gold Price Falls Below $4,000, PCE Data May Push Gold Down to $3,900As of today (June 25) during the Asian session, gold ( XAUUSD) was last priced at $3,976.90, down 0.54% on the day. After gold prices fell below $4,000 yesterday, they fluctuated around $
Author  TradingKey
Yesterday 08: 52
As of today (June 25) during the Asian session, gold ( XAUUSD) was last priced at $3,976.90, down 0.54% on the day. After gold prices fell below $4,000 yesterday, they fluctuated around $
placeholder
Crypto market sheds over 50% of its value amid Bitcoin's brief decline below $60KThe crypto market has erased more than half of its value since reaching an all-time high in late 2025. The decline underscores the severity of the recent bear market and lack of a fresh catalyst to revive investor interest, according to a Wednesday X post by The Kobeissi Letter.
Author  FXStreet
Yesterday 01: 47
The crypto market has erased more than half of its value since reaching an all-time high in late 2025. The decline underscores the severity of the recent bear market and lack of a fresh catalyst to revive investor interest, according to a Wednesday X post by The Kobeissi Letter.
placeholder
Gold Price Trend Forecast: Gold Price Risks Falling Below $4,000, PCE Data Is Key As of the European session today (June 24), gold prices ( XAUUSD) remained weak and fell intraday, touching an intraday low of $4,050 to hit a near two-week low, signaling clear short-ter
Author  TradingKey
Jun 24, Wed
As of the European session today (June 24), gold prices ( XAUUSD) remained weak and fell intraday, touching an intraday low of $4,050 to hit a near two-week low, signaling clear short-ter
Related Instrument
goTop
quote