USD/CAD edges lower toward 1.2300 ahead of US inflation data
|- USD/CAD struggles to gather bullish momentum following Thursday's modest rebound.
- US Dollar Index continues to fluctuate below 92.00 on Friday.
- Investors await May PCE inflation data from the US.
The USD/CAD pair managed to post modest recovery gains on Thursday and stayed relatively quiet during the Asian trading hours on Friday. Nevertheless, the pair started to edge lower ahead of the American session and was last seen losing 0.07% on a daily basis at 91.75.
Eyes on US inflation data
Following the mixed macroeconomic data releases from the US, FOMC policymakers' remarks on the policy outlook helped the USD stay resilient against its rivals on Thursday. Dallas Fed President Robert Kaplan noted that there is an upside risk to his forecast for 3.4% inflation this year and St. Louis Fed President James Bullard argued that policymakers need to account for new inflation risks in coming months.
The US Dollar Index, which closed the previous day ittle changed at 91.81, is currently posting small losses at 91.75, allowing USD/CAD to stay in the negative territory.
Later in the session, the US Bureau of Economic Analysis will release the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, for May.
US May PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt.
There won't be any high-tier data releases featured in the Canadian economic docket. Meanwhile, the barrel of West Texas Intermediate (WTI) is trading with small daily losses around $73, limiting the commodity-related loonie's gains for the time being.
Technical levels to watch for
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