steadied against its U.S. counterpart on Tuesday, with the currency unable to break out of its recent trading range ahead of a key U.S. inflation report that could guide expectations for Federal Reserve interest rate cuts.
“USD-CAD price action is remaining very tight ahead of the US CPI release tomorrow,” said Amo Sahota, director at Klarity FX in San Francisco. “Nevertheless, traders have been trying to nudge some loonie strength since late last week after the stronger employment report.” The U.S. consumer price index report, due on Wednesday, is expected to show core inflation slowing to 3.6 per cent on an annual basis in April.
In domestic data, wholesale trade fell by 1.1 per cent in March from February on lower sales in the motor vehicle and motor vehicle parts and accessories subsector.