The Canadian dollar weakens as the USD gains ground before key US CPI figures, halting a three-day decline.
The USD/CAD pair rose during Wednesday’s Asian session, recovering from a three-day drop that pushed it to 1.3915, its lowest since June 10. The move snapped a streak of losses but lacked strong upward momentum, with spot prices hovering near 1.3930.
The pair’s recent decline followed a broader weakening of the USD, though traders now await the latest US inflation data for direction. Market expectations center on whether the CPI print will reinforce or challenge the Federal Reserve’s policy outlook.
Price action remains subdued as investors adopt a cautious stance ahead of the release, limiting sharp moves in either direction.