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fxAug 17, 2026, 11:28 AM

USD/CAD Slips as Canadian Dollar Gains Ahead of Inflation Test

USD/CAD traded around 1.3860 on Monday, down 0.11%, as reduced Fed tightening expectations weighed on the US dollar against the Canadian dollar.

USDCAD

USD/CAD traded near 1.3860 on Monday, down about 0.11% on the session, as the Canadian dollar firmed against a softer US dollar.

The pair extended its decline while investors scaled back expectations of further monetary tightening by the Federal Reserve, leaving the greenback under pressure against the loonie.

Attention now turns to Canadian inflation data, which is set to test the Bank of Canada's policy outlook after the recent move in the pair.

Source: FXStreet Forex News