CAD Steady Near 1.3900 Amid Mixed Cues Ahead of Fed Meeting

The Canadian Dollar (CAD) remains steady near the 1.3900 mark against the US Dollar (USD), despite mixed fundamental cues and ahead of the Federal Reserve's policy meeting.

Data released on Monday showed that Canada's Consumer Price Index (CPI) held steady at 3% in August, matching the previous month's reading and market forecasts.

Economists at Royal Bank of Canada note that inflation 'held at 3% year-over-year in August, unchanged from July,' with 'underlying inflation pressures' described as having 'remained comparatively contained.'

The USD Index (DXY) remains near a two-week top due to rising bets for an interest rate hike by the Federal Reserve and inflation risks stemming from elevated energy prices.