• The Canadian Dollar halted a midweek pullback but still struggling to find gains.
• Canada is set to release its latest GDP figures on Friday.
• Canadian data prints are likely to be overshadowed by a fresh round of US PCE inflation.

The Canadian Dollar (CAD) tested higher ground against the Greenback on Thursday, looking to put a stop to the midweek’s pullback. However progress remains limited as jittery markets keep one foot in the US Dollar as key US inflation data due on Friday could set the tone for the Federal Reserve’s (Fed) upcoming rate decision in September.

Canada is slated to print its latest round of Gross Domestic Product (GDP) figures on Friday, but a double-header of high impact US Personal Consumption Expenditure Price Index (PCE) inflation due at the same time will likely swamp out CAD flows as investors lean into bets that cooling inflation will keep the Fed on pace to deliver a first rate cut on September 18.