Ella 
USD/CAD stabilized around the 1.3900 range on Friday as the market weighed the impact of the latest US-China trade headlines and stronger oil prices on the dollar’s strength. The US dollar index (DXY) rose around 99.60, supported by comments from US President Donald Trump on ongoing negotiations with China. However, these claims were quickly refuted by China’s Ministry of Foreign Affairs, which stated that no negotiations were ongoing, creating confusion and limiting the bullish continuation of USD/CAD.
Market sentiment remained fragile as traders digested mixed trade signals. Despite Trump’s claims of progress in talks with Beijing, China has strongly denied any tariff consultations are ongoing, stressing that the United States should “stop making chaos.” This contradiction has kept risk appetite in check, weighing on U.S. stock futures and slowing DXY’s recent rebound.
Oil prices remain a factor supporting the Canadian dollar. Brent crude hovered above $68 a barrel after rising on U.S. sanctions on Iranian oil and reports that China may reduce tariffs on some U.S. imports. Although OPEC+ is expected to increase production in May and possibly June, according to analysts at Commerzbank, the net effect is likely to remain limited if offset by compensatory cuts.
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