USD/CAD Jumps to 3-Month High Near 1.3900
The US Dollar moved higher against the Canadian Dollar, with USD/CAD touching a three-month high near 1.3870 on Wednesday.
The Dollar got strong support as traders wait for the Federal Reserve meeting minutes and the Jackson Hole Symposium. Both events may give clues about future US interest rates.
The Greenback also gained after news about a possible Russia-Ukraine peace meeting. Reports suggest talks between leaders could happen soon, though the US said it will not send troops.
Meanwhile, the Canadian Dollar stayed weak after inflation data showed prices rising slower than expected. Canada’s CPI increased only 1.7% in July, down from 1.9% in June. Core inflation rose 2.6% over the year but just 0.1% for the month. This makes traders think the Bank of Canada may act more carefully and avoid raising rates.
Impact :
The US Dollar could stay strong if Fed hints at higher rates. The Canadian Dollar might weaken more with soft inflation, while peace talks possibly add volatility.