The post USD/CAD steady below 1.3950 as soft US inflation weighs on the US Dollar appeared on BitcoinEthereumNews.com.

USD/CAD trades flat near 1.3950, holding below the 200-day EMA. DXY eases to 100.15 as softer US CPI data fuels rate cut speculation. Canada pushes to eliminate Trump-era tariffs ahead of potential trade talks with the United States. The USD/CAD pair remains under pressure for the second consecutive day, trading flat near 1.3950 during Wednesday’s European trading hours. The pair is holding below the 200-day Exponential Moving Average (EMA), coinciding with a broader decline in the US Dollar (USD) following a weaker-than-expected Consumer Price Index (CPI) print on Tuesday. The US Dollar Index (DXY) stabilized around 100.15 after briefly dipping to 99.81 on Wednesday, pulling back further from the one-month highs hit earlier this week on Monday. The initial optimism around US-China tariff relief has faded, with traders refocusing on the potential economic fallout from shifting trade dynamics. Meanwhile, softer inflation data sparks bets that the Federal Reserve (Fed) could resume its easing cycle, with markets now pricing in the possibility of two rate cuts later this year. Geopolitical trade tensions also remain in focus after Canada’s Ambassador to the US, Kirsten Hillman, stated on May 12 that eliminating the “ruinous” tariffs imposed by the Trump administration is Canada’s top priority in any future trade talks. Hillman stressed that “no discussion to be had with the Americans without that being on the table from Canada’s perspective”, calling it the “starting point” for negotiations. The remarks underscore lingering trade friction between the two countries, adding a layer of uncertainty for the Canadian Dollar (CAD) amid broader US Dollar (USD) weakness. On the commodities front, West Texas Intermediate (WTI) crude oil prices eased to $62.93 per barrel, trimming gains from the previous session. The decline was attributed to concerns over rising US crude inventories, as reported by the American Petroleum Institute, which…

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Filed under: News - @ May 14, 2025 4:26 pm