The US dollar is marginally higher against the G10 major currencies this morning and set to close the week on a firm note. A drift to more positive risk sentiment lifted the greenback 1.24% against the Japanese yen and 1.13% against the Swiss franc since Monday.
FX traders seem to want to believe that the US and China will come to terms on trade.
USDCAD was in the spotlight at 1230 GMT when Canadian inflation data was released, but despite great number, it is currently close to unchanged since Monday. CPI rose 2.0%, year-on-year, in December, easily beating the forecast for a gain of 1.7%. Core CPI rose 1.7%, y/y.
Last week, the Bank of Canada said in its monetary policy statement that low oil prices would depress inflation rates throughout 2019. That may be why USDCAD losses following the data evaporated as quickly as they did. USDCAD dropped from 1.3270 to 1.3235 and then climbed back to 1.3260. It also may be because the US dollar was grinding higher against the majors.