The US Dollar faced a retreat against its Canadian counterpart on Monday. This was due to the optimism sparked by President Trump’s announcement of a ceasefire in the Middle East. As a result of this announcement, risk appetite among investors increased. However, the reversal of the USD/CAD currency pair has been capped above the 1.3700 mark. Investors are now eagerly awaiting the Canadian consumer inflation figures, which may influence future trades. The Canadian CPI release is crucial for gauging inflation trends, impacting monetary policy and potentially affecting the USD/CAD exchange rate as well. The market is on edge, preparing for how these figures might dictate the currency pair’s next steps.

Stay tuned for what unfolds in the markets around the CPI announcement. This is a pivotal moment for traders navigating the USD/CAD landscape.