USD/CAD is declining on Friday, though it might step into the bullish territory soon as it is moving away from the daily low right now. Currently, the pair is trading at 1.3254, down 0.10% as of 8:10 AM UTC. The rate touched a daily low at 1.3246.

The greenback has been supported by inflation data for several hours, but the US dollar is still under pressure as investors fear that the US economy will suffer from the global slowdown, especially amid the coronavirus outbreak.

Yesterday, the US Labor Department said that the consumer price index excluding food and energy components (Core CPI) increased by 0.2% in January after a 0.1% rise in December, in line with analysts’ expectations. The inflation was driven by increases in the prices of clothing, rents, airline tickets, recreation, healthcare, and education. In the 12 months through January, the indicator rose 2.3%.

The inflation target of the Federal Reserve is 2%. Earlier this week, Fed Chair Jerome Powell told the Congress that the economy was performing well.

Over the next few months, we expect inflation to move closer to 2%, as unusually low readings from early 2019 drop out of the 12-month calculation,” he explained.

Last month, the Fed left the interest rates unchanged. Economists now expect the central bank to maintain its monetary policy on hold until the end of 2020 after it cut the rates three times last year. Inflation will probably stabilize amid modest wage growth.

The Labor Department said yesterday that the number of US citizens filing for unemployment benefits rose less than expected last week ended February 8. This adds to the hopes that the strengthening labor market would continue to support the US economic expansion.

Initial jobless claims increased by 2,000 to a seasonally adjusted 205,000 last week, while analysts anticipated an increase to 210,000.

The four-week moving average, which is regarded as a more accurate measure as it smoothes volatility, remained unchanged at 212,000.

Later today, the exchange rate between USD and CAD might become even more volatile as the US will release a series of economic updates, including retail sales, industrial production, manufacturing production, business inventories, import and export prices, and the consumer sentiment, among others. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.