The Canadian dollar traded around 1.37 per USD, stabilizing after retreating from its eight-month high of 1.357 seen June 16th as steady domestic inflation readings led to shifting monetary policy expectations and provided support for the loonie. Statistics Canada’s May CPI report showed headline inflation steady at 1.7% year-on-year, below the Bank of Canada’s 2% target for a second consecutive month, while the BoC’s trimmed-mean gauge remained elevated at 3%, prompting markets to dial back the pace of anticipated rate cuts. Simultaneously, US dollar weakness, driven by receding Middle East risk premia following Tehran’s limited strike on a Qatar base that left tanker traffic through the Strait of Hormuz unscathed. Finally, encouraging export figures and progress in US-Canada trade negotiations lent tangible support to cross-border capital flows, anchoring the loonie around current levels.