Daily Foreign Exchange Update for May 12, 2026
May 12, 2026
USD/CAD is pushing higher into the North American session, climbing back above 1.3700 after U.S. inflation data came in hotter than expected and gave the greenback a fresh boost.
Spot Rates
- USDCAD: 1.3710 - 1.3715 (as at 7:10am PST)
- Asia: 1.3675 to 1.3695
- Europe: 1.3685 to 1.3710
- North America: 1.3700 to 1.3718
Technical Support / Resistance
- S2 1.3600
- S1 1.3680
- R1 1.3720
- R2 1.3750
Key Economic Data Releases:
- U.S. CPI (MoM): 0.6% (prev 0.9%)
- U.S. CPI (YoY): 3.8% (prev 3.3%)
Important events we're watching this week:
- May 13, USA, Producer price index
- May 14, Canada, Wholesale sales
- May 14, USA, Jobless claims, retail sales
- May 15, Canada, Housing starts, portfolio investments, mfg sales
Market Spotlight
USD/CAD is pushing higher into the North American session, climbing back above 1.3700 after U.S. inflation data came in hotter than expected and gave the greenback a fresh boost. Headline CPI accelerated to 3.8% year-over-year in April, above both the prior reading and market forecasts, while core inflation also firmed, reinforcing the view that underlying price pressures in the U.S. remain stubborn. Unsurprisingly, that has prompted markets to scale back expectations for near-term Fed easing and helped lift the U.S. dollar broadly, with the DXY index gaining ground across most major currencies. Much of the inflation pressure continues to stem from elevated energy costs tied to ongoing tensions in the Middle East, which is where things get a bit more complicated for USD/CAD specifically. Higher oil prices are simultaneously supporting the Canadian dollar, helping the Loonie hold up better than many of its peers despite the stronger USD backdrop. In effect, the pair is being pulled in opposite directions, with hotter U.S. inflation supporting the dollar while elevated crude prices continue to cushion CAD weakness.
- Currently, the TSX is down 0.34% while the DJIA is up 0.19%.
- EURCAD is down 0.19% trading between 1.6082 and 1.6119.
- GBPCAD is down 0.41% trading between 1.8507 and 1.8620.
- JPYCAD is down 0.03% trading between 0.00868 and 0.00870.
- Gold is down 0.95% trading between $4,676 - $4,773USD/oz.
- Silver has is down 1.13% trading between $83.07 - $87.21USD/oz.
- Oil (WTI crude) is up 3.50% trading between $94.56 and $98.84.