- USD/CAD trades in a rangebound manner on Wednesday in the Asian session.
- Crude oil retreats from seven-year highs, but still, remains firm near 80.50.
- Lower US Treasury yields undermine the demand for the US dollar.
The USD/CAD pair edges higher in the middle of the week. The pair has remained stuck in a narrow trade band of 1.2440 and 1.2500 for the past three-session. At the time of writing, USD/CAD is trading at 1.2470, up 0.04% for the day.
The US dollar retreats from the higher levels ahead of the US Core Inflation Index (CPI) readings. A day earlier, consensus forecasts pointed to a 5.3% in the CPI for September on yearly basis. The Federal Reserve will keep a close watch on inflation readings to go ahead with its tapering decision.
The Federal Reserve Bank of Richmond President Thomas Barkin commented pricing pressure is due to supply-chain bottlenecks that weigh on the greenback. In addition to that, Atlanta Fed President Raphael Bastic said the current inflation is not doing much to harm the economy to call Fed’s policy stance into question.
In the meantime, the US debt limit has passed in the House and will be presented to US President Joe Biden for signing.
The loonie manages to gain traction on robust WTI prices, a major Canadian export. As for now, traders are waiting for the US Core Inflation Index, and FOMC Minutes to take fresh trading impetus.
USD/CAD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks

EUR/USD remains near 1.0400 post-US PCE
The US Dollar’s inconclusive price action allows some recovery in EUR/USD, keeping the pair around the 1.0400 region following the release of PCE inflation data for the month of January.

Gold slumps to fresh multi-week lows below $2,840
Gold stays under bearish pressure and trades at its lowest level in three weeks below $2,840. The uncertainty surrounding the Trump administration's trade policy and month-end flows seem to be weighing on XAU/USD, which remains on track to snap an eight-week winning streak.

GBP/USD clings to gains just above 1.2600 after PCE data
GBP/USD remains positively oriented in the 1.2600 neighbourhood as the Greenback is navigating a vacillating range following the PCE inflation release.

The week ahead – US Payrolls, ECB rate meeting, ITV results – W/c 3rd March
Having seen the Federal Reserve keep rates on hold last month the US labour market continues to show remarkable resilience, despite seeing a slowdown in hiring in January, after a blow out December number.

Weekly focus – Tariff fears are back on the agenda
While the timing of the EU measures remains still uncertain, Trump surprised markets on Thursday by signalling that the 25% tariffs on Canada and Mexico will be enacted when the one-month delay runs out next Tuesday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.