USD/CAD trades around 1.3940 on Thursday at the time of writing, virtually unchanged on the day.
The pair remains caught between two opposing forces: The US Dollar (USD) weakens following softer-than-expected US data, while the Canadian Dollar (CAD) struggles amid falling Oil prices
Pressure on the Greenback intensified following the release of the United States (US) Producer Price Index (PPI). Producer prices were unchanged on a monthly basis in July, following a revised 0.1% decline in June and compared with the 0.2% increase expected by markets. On an annual basis, the PPI slowed sharply to 4.7% from 5.5% in June, below the 4.9% market consensus.
Underlying inflationary pressures also show signs of moderation. The core PPI, which excludes more volatile components, rose 0.2% MoM in July, following a revised 0.4% increase in June and below the 0.3% expected. On an annual basis, the indicator slowed to 4.2% from 4.7% previously.