USD / CAD - Canadian dollar treading water.

- Expectations for Fed to cut rates in September drop.- US PPI data on tap- US dollar is consolidating yesterdays gains at the open.USDCAD open 1.3691, overnight range 1.3694-1.3709, close 1.3706, WTI 66.60, Gold 3363.09The Canadian dollar took a hit after hotter-than-expected US inflation data yesterday encouraged traders to scale back bets on a September rate cut. The hotter than expected inflation numbers and ongoing tariff drama triggered a flight into safe-haven US dollars and the Loonie was collateral damage.Oil prices added to the Canadian dollar’s woes. WTI slid from 67.00 to 66.11 overnight, dragged lower by a stronger US dollar and a bearish API inventory report showing a 19.1-million-barrel jump in crude stocks. Asian markets reacted to the rate move and inflation backdrop by heading south. Australia’s ASX 200 fell 0.79%, Japan’s Topix lost 0.21%, and Hong Kong’s Hang Seng dropped 0.29%. European indexes are mixed: the Dax is up 0.14%, the CAC 40 is down 0.09%, and the FTSE 100 added 0.14%. S&P 500 futures are off 0.12% and the 10-year yield is holding near 4.472%. Gold is trading around 3340.00.EURUSD spent the overnight session digesting its post-CPI slide, chopping around in a 1.1597–1.1629 band. Political friction in France added pressure, with Marine Le Pen’s National Rally threatening to topple the government if it moves forward with scrapping two public holidays. GBPUSD retreated as the dollar firmed on reduced Fed rate cut expectations. UK inflation ticked higher in June, with core CPI rising to 3.7% y/y from 3.5%, but not enough to stop markets from pricing in a Bank of England rate cut in August.USDJPY hovered in a 148.62–149.18 range, underpinned by higher Treasury yields and the market’s growing skepticism over near-term BoJ easing. AUDUSD stayed soft, bouncing between 0.6512 and 0.6535. There’s not much domestic impetus, and traders are already looking ahead to tomorrow’s inflation and jobs data.Markets are waiting on US PPI figures, which are forecast to rise 0.2% after a 0.1% gain last month. Industrial Production and Capacity Utilization numbers are also on tap. North of the border, Canadian Housing Starts are expected to show a drop of 20,500 units, bringing the total to 259,000.