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USD/CAD Remains In The Negative Territory Ahead Of The US Inflation Data

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·2 min read
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The greenback has been underperforming against the Loonie since the start of the month, and the trend has continued today ahead of the inflation data from the United States.

USD/CAD Stays Below 1.2450

The US Dollar has been underperforming since the start of the week, following the poor NFP data last week and other economic policies in the United States. The USD/CAD has been in the negative territory for the past few days, thanks to the Loonie’s excellent performance.

The Loonie has been boosted by the crude oil’s Bull Run over the past few days. The USD/CAD pair has managed to stay below the 1/2450 level over the past few hours as investors await key inflation figures from the United States.

The USD/CAD pair is down by 0.16% over the past 24 hours. The US Core CPI figure would play a huge role in how the pair perform over the next few hours. If the inflation levels in the United States increase, then the greenback could record further losses against the Loonie, and the USD/CAD pair would likely drop below the 1.2400 level in the coming trading sessions.

Canada already got one over the United States last week during the job data presentation. If the inflation levels don’t favor the US, the greenback could record further losses.

USD/CAD chart. Source: FXEMPIRE
USD/CAD chart. Source: FXEMPIRE

US CIP Figures Could Push Pair Higher

On the flip side, if the inflation levels drop, the greenback could mount a challenge against the Loonie and other major currencies in the coming hours. The USD/CAD pair could look to push past the 1.2500 level over the next few hours if the US inflation levels are lower.

Lower inflation levels could point to a stronger US economy and subsequently strengthen the dollar. Investors would also be keenly watching the highlights of the FOMC minutes as they look for signs of the economic direction by the Federal Reserve.

This article was originally posted on FX Empire

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