The Canadian Dollar gains for a second day as softer US inflation data weighs on the USD, pushing the pair lower.
USD/CAD fell for a second consecutive session, trading near 1.3920 in Asian hours on Friday. The decline follows a weaker US Dollar, driven by softer-than-expected US inflation data, which reduced demand for the greenback.
The pair had previously stabilized above 1.4000 earlier in the week, supported by higher oil prices and hawkish Fed expectations. However, recent economic prints have shifted sentiment, with markets now pricing in a potential rate cut later this year.
The Canadian Dollar’s strength persists despite subdued oil prices, reflecting broader USD weakness rather than commodity-driven gains.