The US Dollar held steady against the Canadian Dollar on Thursday, with USD/CAD hovering near recent levels as conflicting signals on global trade talks tempered market sentiment. Uncertainty around the broader trade outlook kept investors cautious, limiting directional momentum for the pair.
While some reports suggested progress between major economies, others highlighted persistent hurdles that could delay any comprehensive trade agreement. This back-and-forth dynamic left dollar sentiment fragile, providing little fuel for a decisive move in USD/CAD.
Meanwhile, commodity-linked currencies like the Canadian Dollar received modest support from firmer oil prices, but gains were capped by the lack of clear catalysts. Traders remained wary of making big bets ahead of key economic data from both the U.S. and Canada later this week.
Federal Reserve officials have also maintained a cautious tone, reinforcing expectations that U.S. monetary policy will remain data-dependent. This backdrop has kept the greenback relatively range-bound against its major peers.
Markets will be closely watching for updates on trade negotiations and fresh economic indicators to gauge the next move in USD/CAD, which could be vulnerable to any shifts in risk appetite.
