Ella 
USD/CAD traded higher during Friday’s Asian trading session, trading higher near 1.3690. The pair was supported by an upward correction in the US Dollar (USD), which could be attributed to hawkish sentiment surrounding the Federal Reserve (Fed)’s intention to maintain higher interest rates for an extended period.
However, the dollar faced challenges due to lower U.S. Treasury yields due to weak U.S. jobless claims data last week released on Thursday. Data released by the U.S. Bureau of Labor Statistics (BLS) showed that the number of people applying for unemployment benefits exceeded expectations. Initial jobless claims rose to 231,000 for the week ended May 3, beating estimates of 210,000 and up from 209,000 the previous week.
Additionally, a preliminary reading of Michigan’s consumer confidence index for May will be released on Friday, with forecasts pointing to a slight decline. The index is a survey that assesses U.S. consumer sentiment and covers three main areas: personal financial conditions, business conditions and purchasing conditions.
In Canada, the Bank of Canada (BoC) released the Financial System Report (FSR) on Thursday. Bank of Canada Governor Tiff Macklem stressed that Canada’s financial system remains resilient. However, McCallum cautioned that global markets could be volatile as expectations for the magnitude and timing of rate cuts continue to change. He also noted that financial institutions still need to adjust to higher interest rates and potential shocks, which poses risks to financial stability.
Carolyn Rogers, deputy governor of the Bank of Canada, also noted that while the number of small businesses reporting bankruptcies has increased, the Bank of Canada does not expect this to have a broader impact on the Canadian economy.
Since Canada is the largest oil exporter to the United States, rising crude oil prices may provide support for the Canadian dollar (CAD), limiting USD/CAD gains. West Texas Intermediate (WTI) crude oil prices were trading around $79.40 on Friday. Crude oil prices moved higher on optimism about demand growth in China and the United States, the world’s two largest crude consumers.
