Ella 
In the Asian market on Friday, the US dollar/Canadian dollar fluctuated within a narrow range, and now seems to have interrupted the decline from the highest level since November 22 late in the previous day. While USD/CAD’s breakout of the 1.3600-1.3610 supply zone this week favored the bulls and supported the prospects for further appreciation in the near term, USD/CAD is currently finding resistance at the 1.3700 mark, with little movement throughout the day.
Crude oil prices were higher amid rising tensions in the Middle East. This, in turn, supports the commodity-linked Canadian dollar, which, coupled with the weak US dollar, is bearish for the USD/CAD currency pair. That said, concerns about production growth in non-OPEC countries, led by the United States, may limit WTI oil price gains. In addition to this, expectations that the Federal Reserve (Fed) may postpone interest rate cuts are beneficial to USD bulls and should limit the downside for USD/CAD.
U.S. consumer inflation data released on Wednesday was higher than expected, forcing investors to postpone the start of interest rate cuts by the Federal Reserve from June to September. Investors also reduced the number of 25 basis point (bps) interest rate cuts from the Fed this year to less than two, or about 42 basis points, from about three or four a few weeks ago. This remained supportive of a rise in U.S. Treasury yields and helped keep the greenback near its highest level since November hit on Thursday, validating the short-term bullish outlook for USD/CAD.
