The USD/CAD pair experienced an upward correction to approximately 1.4105 during the early Asian trading session on Thursday. This movement was influenced by the US Dollar’s appreciation against the Canadian Dollar following President Trump’s announcement of a 90-day suspension of increased reciprocal tariffs on key US trading partners. The forthcoming US Consumer Price Index (CPI) report for March is anticipated to be a significant market driver later in the day. President Trump’s authorization of the tariff delay, intended to facilitate ongoing trade negotiations, has been viewed positively by market analysts. Concurrently, Federal Reserve officials maintain a data-dependent approach to monetary policy, downplaying the immediate economic impact of potential trade disputes. Current market expectations, as indicated by the CME FedWatch tool, suggest a 40% probability of a Federal Reserve rate cut at the next meeting.
