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USD/CAD: Loonie Falls Before Bank of Canada Rate Call
The USD/CAD pair rocketed above its tight trading range on Tuesday. The Memorial Day holiday stateside yesterday ensured trading was thin and it kept the USD/CAD restricted to a narrow range of 1.2270-1.2320. The USD finished last week strongly after recent U.S. inflation data proved to be higher-than-expected, and thanks to Federal Reserve Chair Janet Yellen’s hawkish remarks about the possibility of an interest rate hike occurring by the end of the year. Canadian inflation, meanwhile, came in slightly under expectations, but it gave the loonie, as the Canadian $1 coin is known, no edge against the greenback.