USD/CAD recovers to 1.3730 amid the firmer US Dollar in Thursday’s early Asian session. The FOMC held rate steady for the seventh time in a row at its June meeting on Wednesday. BoC’s Macklem said there is a limit to how far BoC can diverge on rates from Fed, but the’re not close to that. The renewed US Dollar demand after the hawkish hold from the US Federal Reserve provides some support to the pair.
The core CPI, excluding volatile food and energy prices, increased 3.4% YoY in May, compared to a 3.6% rise in April and the estimation of 3.5% On the Loonie front, the Bank of Canada Governor Tiff Macklem said late Wednesday that there is a limit to how far the Canadian central bank can diverge on rates from the Federal Reserve , but they’re not close to that limit. The BoC lowered its benchmark rate by 25 basis points to 4.75% last week.