Daily Foreign Exchange Update for July 14, 2026

Spot Rates: * USDCAD spot rate: 1.4065 - 1.4070 (as at 7:30am PST) * Asia: 1.4125 to 1.4150 * Europe: 1.4115 To 1.4140 * North America: 1.4055 to 1.4135

Technical Support / Resistance: * S2 1.4000 * S1 1.4050 * R1 1.4100 * R2 1.4150

Key Economic Data Releases: - US CPI (MoM): -0.4 (prev 0.5) - USCPI (YoY): 3.5% (prev 4.2%)

Important events we're watching this week: * July 15, Canada, BOC interest rate * July 15, USA, Producer price index * July 16, USA, Retail sales * July 17, USA, Industrial production, consumer sentiment index

Market Spotlight

The Canadian dollar is one of the stronger performers this morning, with USD/CAD slipping back under 1.4100 after U.S. inflation came in well below expectations and sparked broad-based selling in the greenback. June CPI slowed much more than anticipated, reinforcing the view that the inflation spike seen in recent months may have been largely driven by temporary energy price pressures. The softer report has prompted markets to dial back expectations for additional Fed tightening, sending the U.S. dollar lower across the board. At the same time, firmer oil prices are providing another tailwind for the Loonie, while attention now turns to tomorrow's Bank of Canada rate decision, where policymakers are widely expected to leave rates unchanged.

The domestic backdrop has quietly become more constructive as well. RBC now expects the Canadian economy to rebound through the second quarter and continue expanding over the balance of 2026, supported by resilient consumer spending, improving business investment and stronger trade, with CUSMA exemptions continuing to shield most Canadian exports from U.S. tariffs. Combined with recent improvements in inflation and growth data, there is little reason for the Bank of Canada to alter course, reinforcing expectations that rates will remain on hold for the rest of the year. From a market perspective, today's move feels driven more by U.S. dollar weakness than outright Canadian dollar strength, but after spending much of the past several weeks on the defensive, the Loonie will gladly take the assist without asking too many questions.

• Currently, the TSX is up 0.41% while the DJIA is down 0.26%. * EURCAD is down 0.07% trading between 1.6051 and 1.6127. * GBPCAD is down 0.19% trading between 1.8832 and 1.8913. * JPYCAD is down 0.37% trading between 0.00867 and 0.00871. * Gold is up 1.87% trading between $3,983 - $4,104USD/oz. * Silver is up 2.49% trading between $56.86 - $59.66USD/oz. * Oil (WTI crude) is up 2.03% trading between $77.65 and $80.53.