Anna 
The USD/CAD pair is poised to extend its winning streak for the fourth consecutive session, trading higher around 1.3490 during early European hours on Wednesday.
The US Dollar (USD) is finding support from the current market sentiment, despite growing expectations of a potential rate cut by the Federal Reserve (Fed) in June. The release of upbeat Consumer Price Index (CPI) data on Tuesday contributed to the positive sentiment, with a notable increase in the YoY CPI by 3.2% in February, surpassing the estimated 3.1%. The monthly inflation figure also met expectations at 0.4%, up from the previous 0.3%. Although the US Core CPI rose by 3.8% YoY, slightly below the prior reading of 3.9%, it still exceeded the anticipated 3.7%. The month-over-month figure remained steady at 0.4%, meeting market expectations.
Despite the positive data, the CME FedWatch Tool indicates a decreased probability of a rate cut in March (1.0%) and May (15.6%). However, expectations for a rate cut in June stand at 66.6%.
The Canadian Dollar (CAD) may be finding support from the rise in crude oil prices, capping the upside potential of the USD/CAD pair. West Texas Intermediate (WTI) oil prices climbed to nearly $77.90 per barrel during European trading hours. The outlook for global demand supports upward pressure on crude oil prices, as affirmed by the Organization of the Petroleum Exporting Countries (OPEC), maintaining its forecast for robust growth in global oil demand in 2024 and 2025.
Looking ahead, the economic calendar for the Canadian Dollar lacks high-impact data for the week, and market attention will shift to the US Core Producer Price Index (PPI) and Retail Sales data scheduled for release on Thursday.
