Forex
Canadian Dollar Holds Firm Amid Rising Oil Prices
The Canadian Dollar (CAD) is holding steady near its early June high as rising oil prices offset modest USD strength. The USD/CAD pair has been consolidating during the Asian session on Tuesday, with spot prices trading around the 1.3870 zone.
Monday's hotter-than-expected Canadian consumer inflation figures and increasing crude oil prices are supporting the commodity-linked Loonie, which is acting as a headwind for the USD/CAD pair.
The BoC's core CPI measure rose 2.3% YoY in July, up from 2.1%, while the monthly reading increased 0.2%. However, the BoC is likely to keep its key policy rate on hold for the rest of this year.