The pair rises to a six-week high as traders await Fed minutes amid geopolitical tensions and softer Canadian inflation data.
The USD/CAD pair climbed to 1.3765-1.3770 in early European trading, nearing its highest level since mid-April. The move follows a combination of factors, including a firmer USD and weaker Canadian inflation figures released Tuesday.
The US Dollar remains near a six-week peak, supported by geopolitical risks and expectations of a potential Fed rate hike. Meanwhile, a pullback in crude oil prices and softer-than-expected Canadian consumer inflation weighed on the Loonie, lifting the pair.
Technically, the pair has breached the 50% Fibonacci retracement level of its March-May decline. A sustained break above the 200-day EMA at 1.3770 could signal further gains toward 1.3806, the 61.8% Fibonacci level.