USD/CAD weakens to around 1.3810 in Friday’s early Asian session.
US Initial Jobless Claims increased to 240K last week.
The US PCE inflation and Canadian GDP reports will be the highlights later on Friday.
The USD/CAD pair trades in a negative territory around 1.3810 during the early Asian session on Friday. The concerns that a US court ruling would change the outlook for US tariffs weigh on the Greenback. Investors will closely monitor the US April Personal Consumption Expenditures (PCE) Price Index and the Canadian Gross Domestic Product (GDP) data, which are due later on Friday.
A federal appeals court late Thursday temporarily paused a sweeping ruling against US President Donald Trump’s global tariffs while it takes more time to consider the administration’s request for a longer-lasting hold. The Trump administration’s unpredictable policy could exert some selling pressure on the US Dollar (USD) against the Canadian Dollar (CAD) in the near term.
Furthermore, the downbeat US economic data, including US Initial Jobless Claims, drag the USD lower. The number of Americans filing new applications for jobless benefits for the week ending May 24 climbed to 240K, compared to the previous week of 226K (revised from 227K), the US Department of Labor (DOL) showed on Thursday. This figure came in above the market consensus of 230K.
Meanwhile, a decline in Crude Oil prices might undermine the commodity-linked Loonie and help limit the pair’s losses. It’s worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.
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