The USD/CAD pair refreshed daily lows in reaction to stronger Canadian consumer inflation figures, albeit lacked any follow-through selling. The pair was last seen trading near the top end of its daily trading range, around the $1.2080-85 region. The pair gained some positive traction on Wednesday and built on the previous day's goodish rebound from the vicinity of the key 1.2000 psychological mark or multi-year lows. The uptick was supported by a modest US dollar uptick and sliding crude oil prices, which tend to undermine demand for the commodity-linked loonie.
Meanwhile, oil prices extended the overnight retracement slide from over two-month lows and witnessed heavy selling for the second consecutive session on Wednesday. This was seen as another factor that acted as a tailwind for the USD/CAD pair. That said, hotter-than-expected Canadian consumer inflation capped any further upside. Data published by Statistics Canada revealed that the headline CPI rose to 3.4% in April from 2.2% in the previous month. This was higher than consensus estimates pointing to a reading of 3.2%. On a monthly basis, the CPI arrived at 0.5% during the reported month as against market expectations for a modest downtick to 0.4%. 
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The USD/CAD pair refreshed daily lows in reaction to stronger Canadian consumer inflation figures, albeit lacked any follow-through selling. The pair was last seen trading near the top end of its daily trading range, around the $1.2080-85 region. The pair gained some positive traction on Wednesday and built on the previous day's goodish rebound from the vicinity of the key 1.2000 psychological mark or multi-year lows. The uptick was supported by a modest US dollar uptick and sliding crude oil prices, which tend to undermine demand for the commodity-linked loonie.
Meanwhile, oil prices extended the overnight retracement slide from over two-month lows and witnessed heavy selling for the second consecutive session on Wednesday. This was seen as another factor that acted as a tailwind for the USD/CAD pair. That said, hotter-than-expected Canadian consumer inflation capped any further upside. Data published by Statistics Canada revealed that the headline CPI rose to 3.4% in April from 2.2% in the previous month. This was higher than consensus estimates pointing to a reading of 3.2%. On a monthly basis, the CPI arrived at 0.5% during the reported month as against market expectations for a modest downtick to 0.4%.