Senior Analyst Pablo Piovano from FXStreet pointed out that the Canadian Dollar has surrendered part of its recent gains, lifting USD/CAD from levels last seen in early October 2024 near 1.3540 to the boundaries of 1.3800, the figure at the beginning of the week or fresh four-week highs.

Canada's inflation held steady at 1.7 percent in May, offering slight relief from recent price hikes. Gas prices dipped due to carbon tax changes, while shelter costs saw a moderate rise. Grocery inflation eased slightly.

Inflation in Canada steadied in May as drivers paid less at the pump and hefty rent increases continued to cool, though the central bank may still lack a clear enough signal to cut interest rates agai