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fxAug 12, 2026, 7:57 AM

Canadian Dollar Pulls Back from Two-Month Highs as US Dollar Firms Ahead of CPI

The Canadian dollar retreated from its strongest level in two months on Tuesday, as the US dollar strengthened broadly ahead of a key US inflation report.

USDCAD

The Canadian dollar edged lower, surrendering recent gains as the greenback recovered across the board. The move came with investors bracing for the US Consumer Price Index report, which could shape expectations for Federal Reserve policy.

The loonie had previously rallied to a two-month high, but momentum faded with the dollar's rebound. Market participants are closely watching the inflation data for clues on the timing and pace of potential rate cuts.

Source: FXStreet Forex News