USD/CAD Pauses Near Weekly High Amid Mixed Cues
The USD/CAD pair is consolidating near its weekly high of 1.3875-1.3880 during the Asian session on Thursday, amidst mixed fundamental cues.
The optimism over the reopening of the Strait of Hormuz has provided some support to crude oil prices, which in turn benefits the commodity-linked Canadian Dollar.
However, US-Canada trade tensions and slightly hot US inflation data continue to weigh on the Loonie's gains. The US Commerce Department reported that the Personal Consumption Expenditures (PCE) Price Index rose 3.7% over the 12 months through July, above consensus estimates.
The geopolitical risk premium remains in play, supporting the buck and the USD/CAD pair. Traders are waiting for more cues about the Federal Reserve's future policy path, with Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday being closely watched.