USD/CAD drifts lower to 1.3640 in Wednesday’s early European session. The annual Canadian CPI inflation rate slowed to 2.7% in April from 2.9% prior, boosting the odds of the BoC June rate cut. The Fed remains cautious and will wait for more encouraging data to ensure inflation is on course towards its target. The USD/CAD pair weakens to 1.3640 amidtheUS Dollar consolidationon Wednesdayduring the early European session.
Traders increased their bets for a rate cut on June 5 to nearly 55% from 39% before the data was released. The pace of interest rate cuts from the BoC and US Fed might exert some selling pressure on the Canadian Dollar and act as a tailwind for USD/CAD. The Fed officials prefer to wait for more encouraging data to gain confidence that inflation is on course towards the Fed's 2% target.
Majors Macroeconomics Canada CPI
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