• USD/CAD moves back closer to its highest level since August 16 amid a bullish USD. 
• Bets for a regular 25 bps Fed rate cut in November lift the USD to a multi-week top.
• An uptick in Oil prices underpins the Loonie and caps the pair ahead of the US CPI.

The USD/CAD pair reverses an Asian session dip and is currently placed just above the 1.3700 round figure, within the striking distance of its highest level since August 16 touched the previous day. The intraday uptick, however, lacks bullish conviction amid recovering Crude Oil prices, which tend to underpin the commodity-linked Loonie, and ahead of the latest US consumer inflation figures.

Investors remained wary of a potential escalation in tensions between Israel and Iran, with Israeli Defence Minister Yoav Gallant promising that the strike against the latter would be "lethal, precise and surprising". This raises worries about supply disruptions from the Middle East, which, along with a spike in fuel demand on the back of a major storm in Florida, assists Crude Oil prices to build on the overnight bounce from a one-week low. This, in turn, offers some support to the Canadian Dollar (CAD), though expectations for a larger interest rate cut by the Bank of Canada (BoC) cap gains. Apart from this, the underlying bullish tone surrounding the US Dollar (USD) acts as a tailwind for the USD/CAD pair.