Softer June inflation and new US tariffs on Canadian goods hinder the Canadian Dollar’s recovery against the USD.
The Canadian Dollar’s rebound against the US Dollar has stalled near 1.40, following softer-than-expected June inflation data. The CAD had previously recovered from 1.4250 but failed to reclaim its 50-day moving average at 1.3991, signaling weakened momentum.
Recent US tariffs on Canadian exports add further pressure, complicating the currency’s path to recovery. Analysts note that without a shift in inflation trends or trade policy, the CAD may struggle to gain ground.
Market focus remains on upcoming economic data and potential policy responses from the Bank of Canada.