The pair falls 0.21% after WTI crude rebounds to $70.50, offsetting USD strength following in-line US PCE inflation data.
USD/CAD slipped to 1.4205, down 0.21% on Thursday, retreating from a 14-month high. The decline follows a 1.05% rise in West Texas Intermediate crude to $70.50, bolstering the Canadian dollar amid improved export prospects for Canada’s key commodity.
The US dollar eased after the May PCE Price Index matched forecasts, with headline inflation at 4.1% YoY and core at 3.4% YoY. Personal income and spending both rose 0.7% MoM, underscoring US economic resilience. Mixed data included a drop in durable goods orders and a decline in jobless claims to 215K.
The US Dollar Index (DXY) retreated slightly, reflecting modest profit-taking after recent gains. The CAD’s recovery remains tied to oil price movements, with further direction likely hinging on upcoming US economic releases.