• USD/CAD edges higher during the Asian session on Wednesday amid a modest USD strength. 
• Reduced bets for a 50-bps Fed rate cut lift the US bond yields higher and underpin the buck.
• An uptick in Oil prices lends support to the Loonie and keeps a lid on further gains for the pair.

The USD/CAD pair attracts dip-buying during the Asian session on Thursday and for now, seems to have stalled its retracement slide from a three-week top, around the 1.3620-1.3625 area touched the previous day. The intraday uptick, however, lacks bullish conviction, warranting some caution before positioning for any meaningful appreciating move. 

The crucial US Consumer Price Index (CPI) report indicated that consumer prices in the US are easing overall. That said, the core CPI indicated that the underlying inflation remains sticky and dashed hopes for a larger, 50 basis points (bps) rate cut by the Federal Reserve (Fed) next week. This, in turn, leads to an uptick in the US Treasury bond yields, which lifts the US Dollar (USD) back closer to the monthly peak and turns out to be a key factor acting as a tailwind for the USD/CAD pair.