The Canadian Dollar strengthened against the US Dollar on Friday, benefiting from a broader improvement in market sentiment. While the CAD faced downward pressure earlier in the week, the Greenback’s weakness due to improved risk appetite allowed the Canadian currency to recover some ground.  

The upcoming release of Canadian CPI data next Tuesday will be a key focus for investors, as it will provide insights into the domestic inflationary environment.

Technical Outlook

USD/CAD has declined below the 50-day EMA, suggesting a potential short-term bullish bias for the Canadian Dollar. However, further confirmation is needed to establish a clear upward trend.