USD Flat Against CAD As Momentum Stalls
The US Dollar is slowing down, running side by side with the Canadian dollar in the USD/CAD pairing after it loses steam.
The dollar was up against its northern currency counterpart but is now staying flat after the USD Index dropped slightly on Wednesday. That key indicator has been falling since Valentine’s Day and has continued its descent through Thursday morning. The USD Index is down to 104.591 at the time of this writing. The decline is slow but steady, which means the Canadian dollar could start to gain ground on the US dollar soon.
The Canadian dollar did fall substantially against the US dollar on Tuesday, actually declining more than it had in almost a year against the US instrument. That decline has come to a screeching halt ahead of US dollar index data that shows the dollar is not quite as strong as expected. It was US inflation data that helped the dollar push higher earlier in the week, but with that report several days behind us, the US dollar has to rely on fresh positive data to stay ahead.
Since November, USD has been gaining on CAD, but unless there is new data in its favor, the dollar will continue to struggle in this pairing.
How the Dollar Is Faring Against Other Instruments
The dollar is trading at 150 up against the Japanese yen, down 0.3% in this pairing. The US has enjoyed some decent economic reports recently, which are helping it against a similarly recovering and strengthening Japanese economy.
Against the euro, the dollar is falling slightly as well. The USD.EUR pairing is down 0.15% today but was up substantially on Tuesday. Those Tuesday gains have not been erased by slight losses that started on Wednesday, so the dollar is still strong in this pairing and in many others thanks to that recent surge.
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