USDCAD rises modestly after Canada reported sharp falls in June producer and raw material prices, while the U.S. dollar traded mixed on Friday.
The pair rose 0.07%, which reflected a weaker Canadian dollar against the greenback. Elsewhere, the Australian dollar gained 0.17% and the New Zealand dollar added 0.24%, helped by stronger Flash PMI data. Meanwhile, the Swiss franc fell 0.20% against the U.S. dollar, the euro edged down 0.08%, and sterling rose 0.05%.
USDJPY was little changed after climbing to 40-year highs earlier in the week. The broader dollar tone stayed mixed as Treasury yields moved lower on the day. However, yields still posted strong weekly gains.
USDCAD Rises Modestly on Canada Data
Canada’s Industrial Product Price Index fell 1.4% in June, ending a five-month run of gains. At the same time, the Raw Materials Price Index dropped 6.9%, its biggest monthly fall since July 2022. The report pointed to easing upstream price pressure.
Energy led the decline after a tentative U.S.-Iran agreement eased concern about possible oil supply disruptions through the Strait of Hormuz. Lower crude prices then pulled down refined petroleum products. Precious metals and other non-ferrous metals also weakened.
Even without energy, both Canadian price indexes declined. That suggested the softer trend was broad and not limited to fuel-related items. Lumber stood out as the main exception, as prices kept rising on resilient demand.
U.S. Data and Yields Shape FX Trade
In the United States, the July Flash S&P Global PMI report showed mixed but mostly firm activity. Manufacturing PMI slipped to 53.8 from 53.9 and missed the 54.3 forecast. By contrast, services PMI rose to 53.6 from 51.2 and beat the 51.5 estimate.
The composite PMI also reached 53.6, its highest level since November 2025. Additionally, U.S. new home sales rose 1.6% in June to an annualized 628,000. That topped the 610,000 estimate.
Treasury yields moved lower across the curve on Friday. The 2-year yield fell to 4.337%, while the 10-year yield eased to 4.679%. Even so, for the week, the 2-year yield rose 15.4 basis points and the 10-year yield gained 12.2 basis points.
The source article also said the Federal Reserve decision is due on Wednesday, with rates expected to stay unchanged and a 38% chance of a 25 basis point hike.
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Source: InvestingLive
