USD/CAD battles after US PPI decelerates

The USD/CAD pair extended its losses for the second straight day as sellers eye a break of the 200-DMA. July’s US inflation reports show signs of peaking, with CPI at 9% YoY and PPI at 10% YoY, below their previous month’s readings.

The USD/CAD is trading at 1.2738 under its opening price after hitting a daily high at 1.2792, but as North American traders got to their desks, tumbled the major to its daily low at 1.2727, 13 pips below the 200-day EMA.

Traders’ focus shifts toward the University of Michigan Consumer Sentiment and Inflation Expectations. The USD/CAD slides towards the 200-day EMA on Thursday due to a risk-on impulse propelled by additional US inflation data with the PPI increasing by 9.8% YoY, lower than foreseen. Moreover, the core PPI, which excluded volatile items, came aligned to estimations of 7.6% YoY, less than June’s 7.9%.

On the labour market’s front, US Initial Jobless Claims for the week ending on August 6 rose 262K, less than 263K expected but jumped for the second-consecutive week.