USD/CAD Sellers Eye Break Below 1.3770 Amid US Inflation Uncertainty

The USD/CAD has been under pressure recently, but buyers have defended the level around 1.3770 on multiple occasions.

A potential catalyst for a break below this level is the upcoming US Consumer Price Index report, which could impact interest rates and put further pressure on the US dollar.

The Canadian economy has shown mixed signals, with the Bank of Canada adopting a cautious tone after its September meeting. The latest employment report showed a decline in jobs, which may have weakened the case for an immediate change in policy.

A softer reading from the inflation report could reinforce the argument for keeping interest rates unchanged, despite concerns about energy prices and other upside inflation risks.