The post USD/CAD treads water above 1.4150 ahead of US PMI data appeared on BitcoinEthereumNews.com.

USD/CAD remains steady as the US Dollar faces challenges due to improved market sentiment. US Initial Jobless Claims increased to 219,000 in the previous week, surpassing the expected 215,000. The Bank of Canada may rethink to cut rates amid elevated inflation in Canada. USD/CAD moves little after registering losses in the previous session, trading around 1.4170 during the Asian hours on Friday. The pair lost ground as the US Dollar (USD) struggled amid weak jobless claims data and mixed signals from the Federal Reserve (Fed). Traders will keep an eye on the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) for February, which is due later on Friday. US Initial Jobless Claims for the week ending February 14 increased to 219,000, surpassing the expected 215,000. Continuing Jobless Claims also rose slightly to 1.869 million, just under the forecast of 1.87 million. Fed Governor Adriana Kugler noted on Thursday that US inflation still has “some way to go” before reaching the 2% target, acknowledging uncertainty ahead, according to Reuters. Meanwhile, St. Louis Fed President Alberto Musalem highlighted the potential risks of stagflation and rising inflation expectations. The US Dollar Index (DXY), which measures the USD against six major currencies, gained ground near 106.50 at the time of writing. However, the DXY faced challenges amid improved market sentiment after US President Donald Trump announced potential progress in trade negotiations with China, easing market concerns over tariffs. However, US President Donald Trump announced plans to impose import tariffs on lumber and forest products next month, which could weigh on the Canadian Dollar (CAD) as Canada remains a leading global producer and exporter. Meanwhile, the Bank of Canada (BoC) may rethink cutting rates following the release of January’s CPI data, which showed elevated inflation in Canada. Traders will be closely watching…

---

Filed under: News - @ February 21, 2025 3:18 am