USD/CAD trades around 1.3915 on Wednesday at the time of writing, virtually unchanged on the day with a modest decline of 0.06%.
The pair lacks a clear direction following the release of US inflation data that matched expectations, while renewed tensions surrounding the peace process between the United States (US) and Iran maintain uncertainty in the Oil market
In the United States, inflation, as measured by the Consumer Price Index (CPI), eased to 3.4% YoY in July from 3.5% in June, according to the Bureau of Labor Statistics (BLS). On a monthly basis, prices rose by 0.1%, following a 0.4% decline in June. The core CPI, which excludes volatile food and energy components, increases by 0.2% MoM and 2.5% YoY.
All these figures match market expectations. The reaction of the US Dollar (USD) remains limited, as the figures provide no surprise significant enough to materially alter expectations regarding the Federal Reserve’s (Fed) monetary policy outlook. The US Dollar Index (DXY), which measures the value of the Greenback against a basket of six major currencies, edges slightly lower following the release.