US data revealed during the morning lifted the USD/CAD above its 100-DMA when the University of Michigan showed that the US Consumer Sentiment improved from 52.5 foreseen to 55.1, reaching a three-month high. That is good news for the Federal Reserve; however, inflation expectations for a 5-year horizon jumped above the 3% threshold, while in the short-term, one year, decreased to 5% from 5.2% estimated. Nevertheless, during the week, US inflation data pointed downwards, led by CPI down at 8.5%, while the PPI decelerated to 8.5%. However, Fed officials reiterated that even though data is welcomed, inflation still is “too high,” so the US central bank emphasized its commitment to tackling inflation. On Thursday, San Francisco’s Fed Mary Daly said that inflation remains high and that she favors a 50 bps rate hike. However, she does not discount a 75 rate hike, but it would depend on data. On Friday, Richmond’s Fed Thomas Barkin said that inflation data is welcome, but he wants to see a sustained period of inflation under control. Barkin added he’s undecided about September’s FOMC monetary policy meeting. In the meantime, the US Dollar Index is recovering some ground in the day, is up 0.56%, at 105.676, set to finish below the 106.000 mark.