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The USD/CAD pair trades flat near 1.4060 amid the consolidation of the US Dollar (USD) during the early Asian session on Friday. The US October Retail Sales will be in the spotlight on Friday along with the Fedspeak.
The Greenback holds steady near the fresh 2024 highs despite Trump trades showing signs of slowing. The upside of the pair might be limited amid the cautious remarks from the US Federal Reserve (Fed). On Thursday, Fed Chair Jerome Powell said that the recent performance of the US economy has been “remarkably good,” giving the Fed room to lower interest rates at a careful pace.
Furthermore, Producer inflation in the US rose more than expected in September. Data released by the US Bureau of Labor Statistics on Thursday showed that the US Producer Price Index (PPI) rose 2.4% on a yearly basis in October. This figure followed the 1.9% rise seen in September (revised from 1.8%) and came in above the market expectation of 2.3%.
On the Loonie front, the decline in crude oil prices could weigh on the commodity-linked Canadian Dollar (CAD) in the near term. It’s worth noting that Canada is the largest oil exporter to the United States (US), and lower crude oil prices tend to have a negative impact on the CAD value.More By This Author:WTI Recovers To Near $68.00, Stronger US Dollar Might Cap Its Gains NZD/USD Remains On The Defensive Below 0.5950 As Traders Await US CPI Data WTI Drops To Near $68.00 As OPEC Cuts Demand View
