Can the Canadian dollar keep climbing?

Key Movers

The euro was down on the slightly stronger dollar, trading at 1.209 this morning. GBPUSD was only modestly lower this morning, holding steady at the 1.41 mark. This week the pound hit three-month highs against the dollar, driven by easing concerns over another Scottish independence referendum, England’s reopening and the US Federal Reserve indicating its holding steady on interest rates. The Australian dollar tracked sideways through trade yesterday amid rising concern transitory inflation will morph into longer run price pressures. Elevated commodity prices and a shortage of labor supply across the global economy have prompted an uptick across key inflation indicators like PPI and PMI data sets, raising fears central banks will be forced to unwind accommodative policy platforms ahead of a full economic recovery.The US dollar saw a slight rebound after the consumer price index report showed that headline and core inflation rose 4.2% and 3% respectively. The higher than expected inflation figures could pressure the US Federal Reserve to increase rates sooner than expected. Should this happen, we could see a renewed demand for the US dollar.