USD/CAD Slips Toward 1.3920 as Softer US Inflation Weighs on Dollar

The Canadian dollar extended its advance against the US dollar on Friday, with USD/CAD falling for a second consecutive session. In Asian hours, the pair was trading near 1.3920.

The move reflected broad US dollar weakness after a softer-than-expected US inflation reading. The data weighed on the greenback and helped the loonie hold its recent gains.

Notably, the Canadian dollar strengthened despite subdued oil prices. This suggests the pair’s decline was driven more by dollar-side pressure than by commodity-market developments.

USD/CAD’s two-day slide highlights how inflation expectations are influencing near-term dollar sentiment.