Forex – USD/CAD Edges Higher but Upside Limited

© Reuters. Greenback gains some ground vs. loonie in early trade – The U.S. dollar edged higher against its Canadian counterpart on Monday, but gains were expected to remain limited as investors turned to this week’s highly-anticipated U.S. inflation data.

was up 0.12% at 1.2594 by 09:30 a.m. ET (13:30 GMT).

Market participants were eyeing this week’s U.S. inflation data for further clues on how fast the Federal Reserve will raise interest rates this year.

The greenback had strengthened broadly after the U.S. Congress early Friday morning, ending a brief government shutdown.

The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.

Government activities were temporarily shut down when a midnight deadline to pass the U.S. budget deal was missed on Thursday due to a prolonged speech by Senator Rand Paul, who said the bill would “loot the Treasury.”

Meanwhile, the commodity-related Canadian dollar benefited from a rise in , after last week’s steep losses.

The loonie was fractionally lower against the euro, with up 0.08% at 1.5425.

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