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fxAug 17, 2026, 6:58 AM

Canadian Dollar Firms as USD/CAD Slides Toward 1.3860

USD/CAD traded near 1.3860 in early European hours Monday as the US dollar gave up ground against the Canadian dollar amid scaled-back Fed rate-hike bets, with CPI data ahead.

USDCAD

USD/CAD edged lower to around 1.3860 during early European trading on Monday.

The US dollar extended its decline against the Canadian dollar as traders pared expectations for additional Federal Reserve rate hikes, leaving the loonie firmer on the day.

Market attention was on upcoming CPI data, with the inflation print expected to shape near-term Fed policy expectations and the pair’s next directional move.

Source: FXStreet Forex News