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
EUR/USD Price Forecast: Keeps bullish vibe, first upside barrier emerges above 1.1800The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday.
Author  FXStreet
12 hours ago
The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday.
placeholder
Gold Price Forecast: XAU/USD climbs to near $4,350 on Fed rate cut bets, geopolitical risks Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. Gold finished 2025 with a significant rally, achieving an annual gain of around 65%, its biggest annual gain since 1979.
Author  FXStreet
17 hours ago
Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. Gold finished 2025 with a significant rally, achieving an annual gain of around 65%, its biggest annual gain since 1979.
placeholder
Silver Surges Then Flash Crashes. Safe-Haven Asset Or Speculative Bubble? What Is the Truth of Market Turmoil?The global precious metals market experienced extreme volatility at the end of 2025, with silver prices plummeting nearly 9% on December 29, marking its largest single-day decline since 2
Author  TradingKey
Dec 31, 2025
The global precious metals market experienced extreme volatility at the end of 2025, with silver prices plummeting nearly 9% on December 29, marking its largest single-day decline since 2
placeholder
Silver Price Forecast: XAG/USD dips to near $72.50 as CME raises marginsSilver price (XAG/USD) has lost its nearly a 4.5% gain registered in the previous session, trading around $72.50 during the Asian hours on Wednesday.
Author  FXStreet
Dec 31, 2025
Silver price (XAG/USD) has lost its nearly a 4.5% gain registered in the previous session, trading around $72.50 during the Asian hours on Wednesday.
placeholder
Bitcoin Rejected at $90K: Is the ‘Digital Gold’ Narrative Losing Ground to Bonds?Bitcoin struggles to break the $90,000 barrier, with investors preferring traditional hedges like gold and bonds.
Author  Mitrade
Dec 31, 2025
Bitcoin struggles to break the $90,000 barrier, with investors preferring traditional hedges like gold and bonds.
Related Instrument
goTop
quote