Canadian Dollar extends slide vs USD on soft CPI, Trump tariffs
The USD/CAD pair is seen buying on the previous days solid rebound from the 1.4000 psychological mark, or its lowest level since June 17, and gaining positive traction for the second straight day on Tuesday. Spot prices climbed to a one-week high, around the 1.4085 region, during the Asian session, though the mixed fundamental backdrop warrants some caution for aggressive bulls. Against the backdrop of Canadas soft consumer inflation figures, the risk of a fresh US-Canada trade war is seen undermining the Canadian Dollar (CAD). The US Dollar (USD), on the other hand, preserves its recent gains amid a further escalation of tensions in the Middle East and reviving US Federal Reserve (Fed) rate-hike bets. This, in turn, acts as a tailwind for the USD/CAD pair, though elevated crude oil prices offer some support to the commodity-linked Loonie and might cap further gains. Statistics Canada reported that the country‘s annual inflation rate unexpectedly slowed to 2.8% in June from 3.2% in May and declined by 0.4% on a monthly basis. Adding to this, the Bank of Canada’s (BoC) preferred core gauges – trim and median Consumer Price Index (CPI) – dropped below the 2% threshold for the first time in nearly six









