The USD/CAD pair slipped below the key 1.2500 psychological mark on reaction to mixed US consumer inflation figures, though lacked any follow-through selling. The pair struggled to capitalize on its modest intraday gains, instead met with some fresh supply near the 1.2550 region and turned lower during the early North American session. This marked the second successive day of a negative move and was sponsored by a modest US dollar pullback following the release of mixed US consumer inflation figures.

The headline CPI decelerate to 0.5% in July from the 0.9% rise recorded in the previous month. Adding to this, core CPI, which excludes food and energy prices, rose 0.3% MoM against 0.4% expected and June's 0.9%. This, along with Richmond Fed President Thomas Barkin's comments, prompted some USD profit-taking and exerted pressure on the USD/CAD pair.