CAD Weakens Against USD Ahead of US Inflation Data
The Canadian Dollar (CAD) weakened against the US Dollar (USD) on Thursday ahead of key inflation data from the United States. The USD/CAD pair advanced around 1.3820, up 0.11% on the day.
Investors are awaiting the release of the US Producer Price Index (PPI) data for August, which is expected to play a crucial role in shaping expectations surrounding the Federal Reserve's next policy decision.
The headline PPI is forecast to accelerate to 5.3% YoY in August from 4.7% in July, while the core index, which excludes volatile food and energy components, is predicted to rise to 4.6% from 4.2% previously.
Stronger-than-expected figures could fuel concerns about persistent inflationary pressures and reinforce expectations that the Fed will raise interest rates at its upcoming meeting.