- The USD/CAD pair is showing upward movement as the US Dollar finds support from positive sentiment regarding potential trade agreements.
- Reports indicate that Washington is progressing in preliminary trade negotiations with key Asian partners, notably South Korea and Japan.
- The Canadian Dollar faces headwinds after suggestions from Trump that the existing 25% tariff on Canadian automotive imports might be increased.
USD/CAD is rebounding from losses seen in the prior trading session, hovering near the 1.3870 mark during Friday’s Asian trading hours. This increase is correlated with a stronger US Dollar (USD), fueled by growing confidence in prospective US trade deals. Sources at Reuters suggest that Washington is making advances in initial trade talks with Asian allies, including South Korea and Japan.
Nevertheless, the US Dollar experienced some downward pressure following the release of the latest Initial Jobless Claims figures on Thursday. Data from the US Department of Labor indicated that claims increased to 222,000 for the week concluding on April 19, marginally surpassing forecasts and rising from the previous week’s revised total of 216,000. Conversely, Continuing Jobless Claims decreased by 37,000 to 1.841 million for the week ending April 12.
Minneapolis Fed President Neel Kashkari voiced apprehension late Thursday regarding the possibility of future job reductions amidst the current climate of uncertainty. While he acknowledged that there hasn’t been a significant surge in layoffs to date, there are reports that some companies are preparing for such an event if the uncertainty continues. Kashkari also mentioned that resolving trade disputes could alleviate concerns and foster a more favorable economic view.
