The USD/CAD pair posts modest gains near 1.3870 during the early Asian session on Wednesday. The Canadian Dollar (CAD) weakens against the US Dollar (USD) as cooler Canadian inflation data raised expectations that the Bank of Canada (BoC) would cut interest rates in the coming months.
Rapidly increasing downward momentum suggests Pound Sterling (GBP) could continue to decline, potentially dropping below 1.3485. In the longer run, GBP is now neutral; it is likely to trade in a range between 1.3415 and 1.3585, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Oil prices are marginally lower in early morning trading today, following the meeting between Presidents Trump and Zelensky.