US Inflation Data Meets Expectations, USD/CAD Steadies at 1.3915
The Canadian Dollar has steadied against its US counterpart as US inflation data met market expectations. The USD/CAD pair traded around 1.3915 on Wednesday, virtually unchanged from the previous day with a modest decline of 0.06%. The pair lacks direction following the release of US inflation figures that matched expectations.
The Consumer Price Index (CPI) in the United States eased to 3.4% year-over-year (YoY) in July from 3.5% in June, according to the Bureau of Labor Statistics (BLS). On a monthly basis, prices rose by 0.1%, following a 0.4% decline in June.
The core CPI, which excludes volatile food and energy components, increased by 0.2% month-over-month (MoM) and 2.5% YoY. The figures provide no surprise significant enough to materially alter expectations regarding the Federal Reserve's monetary policy outlook.
On the Canadian side, Oil remains a key driver for the Canadian Dollar, as Canada is a major crude exporter. West Texas Intermediate (WTI) Oil declines on Wednesday after two consecutive days of gains, although geopolitical uncertainty in the Middle East could limit the downside in energy prices.