USD/CAD Edges Higher as US Inflation Data Meets Expectations

The US dollar edged higher against the Canadian dollar after the release of fresh US inflation data on Friday, reaching an intraday peak of 1.3882 and advancing 0.27% to about 1.3870.

The US Consumer Price Index rose 3.4% year-on-year in August, meeting expectations, while core CPI increased 0.3% month-on-month versus a forecasted 0.2%, with the annual core rate easing to 2.4% from 2.5%. However, the initial bounce of the US dollar faded as the yearly profile showed no renewed acceleration.

The Canadian dollar lagged its peers due to falling oil prices, with West Texas Intermediate plummeting 4.62% to around $95.90 after failing to hold above the critical $100 threshold.