Canadian Dollar weakens against US Dollar ahead of key US inflation data
USD/CAD trades around 1.3820 on Thursday at the time of writing, up 0.11% on the day. The pair edges higher as investors await the release of the United States (US) Producer Price Index (PPI) data for August, scheduled for 12:30 GMT.
On Thursday, the Canadian Dollar (CAD) slipped against the US Dollar (USD) as traders awaited key US inflation data. The USD strengthened due to expectations of a Federal Reserve interest rate hike at their September meeting, driven by fears of persistent inflation. The USD/CAD pair rose 0.11% to 1.3820. However, the Canadian Dollar's rise was limited by its dependence on higher oil prices, as Canada is a major energy exporter.
The Japanese Yen (JPY) remained relatively stable, near a seven-month low, while the US Dollar (USD) faced support from hawkish Federal Reserve expectations and escalating US-Iran tensions. Meanwhile, gold prices dropped early in the American session but later stabilized. The upcoming US inflation data, including the Producer Price Index and Consumer Price Index, will likely influence market sentiment ahead of the Federal Reserve's monetary policy announcement.
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