The currency pair climbed to 1.3833 after US inflation figures reinforced expectations of prolonged higher interest rates.
The USD/CAD pair rebounded from daily lows of 1.3833, gaining 0.26% to reach new weekly highs. The move was driven by stronger-than-expected US inflation data, which reduced bets on imminent Federal Reserve rate cuts.
Prior to the release, the pair had been trading in a short-term downturn, with market participants closely watching inflation trends. The latest figures suggest persistent price pressures, contrasting with earlier expectations of a cooling economy.
The relative strength index (RSI) showed signs of recovery, with traders now eyeing the 1.3900 level as the next resistance point.