• USD/CAD trades in positive territory for the fourth consecutive day near 1.3950 in Wednesday’s early Asian session. 
• Fed's Kashkari said it was premature to declare victory over inflation.
• Lower crude oil prices weigh on the commodity-linked CAD. 

The USD/CAD pair extends the rally to around 1.3950 during the early Asian session on Wednesday. The upward movement of the pair is bolstered by the firmer US Dollar (USD) amid optimism around the Trump trades. Investors will closely monitor the release of the US October Consumer Price Index (CPI) data, which is due later on Wednesday. 

The expectation that Trump’s policies could trigger a fresh wave of inflation and compel the US Federal Reserve (Fed) to slow the pace of rate reductions boost the USD broadly. Meanwhile, the US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, climbs past the 106.00 barrier, the highest level in six months.  

On Tuesday, Minneapolis Fed President Neel Kashkari said that the central bank feels confident about its long-running battle with transitory inflation, but it’s premature to declare outright victory. Kashkari added that the Fed won't model Trump policies' effect on the economy until they become clear. Richmond Fed President Tom Barkin noted that while inflation appears to be coming down, it might still get stuck above the Fed's target levels.