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USD/CAD is steady after two days of gains, trading around 1.3850 during the Asian session on Friday. That level is close to the two-month high of 1.3868 reached on Thursday. The pair’s strength may be linked to the strong performance of the US dollar (USD), driven by growing expectations that the Federal Reserve will take a less aggressive approach to interest rate cuts than previously thought.
In addition, rising speculation that former President Donald Trump may be re-elected in the upcoming U.S. presidential election in November, especially due to inflationary policies including higher tariffs and lower tax rates, also provided support for the US dollar. Provide support.
Republican nominee Donald Trump once again used a familiar reality TV mantra at an event in Las Vegas, Nevada, on Thursday. According to Reuters, Trump said: “Under the leadership of the Trump administration, we will build an economy that lifts all Americans, including African Americans, Hispanics, our great Asian Americans and Members of the Pacific Islander community, many of whom are here today.
Meanwhile, Vice President Kamala Harris was joined at a rally in Georgia by rock legend Bruce Springsteen, entertainer Tyler Perry and former President Barack Obama’s endorsement drew thousands of supporters in the key battleground state.
The commodity-linked Canadian dollar (CAD) is likely to continue to weaken amid falling crude oil prices, as Canada is the largest oil exporter to the United States (US). As of now, West Texas Intermediate (WTI) oil prices are experiencing their third straight day of declines, trading around $70.20 per barrel.
Traders are likely to focus on Canadian retail sales data due later in the North American session. Additionally, Bank of Canada (BoC) Governor Tiff Macklem will speak with reporters in person and virtually during the International Monetary Fund (IMF) meeting.
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