Ella 
In Asia on Friday, USD/CAD hovered around 1.3540, showing signs that it may interrupt its four-day losing streak. However, trading is expected to be light as Friday falls on Good Friday. The reason for the strength of the US dollar (USD) may be that the Federal Reserve is trying to maintain higher interest rates, demonstrating hawkish expectations.
This change in expectations may be related to the recent strong economic data in the United States. In addition, Federal Reserve Governor Christopher Waller’s cautious remarks about not rushing to initiate interest rate cuts also tempered market expectations for three interest rate cuts in 2024.
U.S. gross domestic product (GDP) grew at an annual rate of 3.4% in the fourth quarter, beating market expectations of 3.2%. U.S. core personal consumption expenditures came in at 2.0% in the fourth quarter, slightly below expectations and the previous reading of 2.1%.
The Canadian dollar (CAD) received a boost due to rising WTI oil prices and promising prospects for foreign currency inflows. The rise in crude oil prices has been linked to expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will continue to cut production.
