USD/CAD Surges to Two-Month High Ahead of Crucial Inflation Data

The USD/CAD pair saw an increase during Wednesday's Asian session, breaking its three-day losing streak and reaching a two-month high at 1.3915, a level not seen since June 10.

This upward movement was short-lived, however, as spot prices lack bullish conviction and trade around 1.3930, awaiting the release of US inflation figures.

The crucial Consumer Price Index (CPI) data is due later today, followed by the Producer Price Index (PPI) on Thursday, which will provide fresh cues about the US Federal Reserve's future policy path.

This, in turn, will influence USD demand and the pair's movement. A combination of diverging forces may hold back traders from placing aggressive bullish bets or positioning for meaningful appreciation.