• USD/CAD remains stable because the American dollar faces the challenges because of better market moods.
• Initial unemployed claims in the US increased to 219,000 last week, exceeding the expected 215,000.
• The Canada Bank may think about lowering the rates in connection with increased inflation in Canada.

USD/CAD moves little after registering losses in the previous session, trading around 1.4170 at Asian hours on Friday. The couple lost the basis when the US dollar (USD) fought among impoverished claims and mixed signals from the Federal Reserve (FED). Traders will have an eye on the initial reading of the American Sa (PMI) purchasing managers index of February, which is expected to seem on Friday.

The initial unemployed claims in the USA in a week ending on February 14 increased to 219,000, exceeding the expected 215,000. The continuation of the unemployed claims also increased slightly to 1.869 million, just off the forecast of 1.87 million.

Fed Governor Adriana Kugler noticed on Thursday that inflation in the US still has a “path” before reaching a 2% goal, recognizing uncertainty, according to Reuters. Meanwhile, the President of St. Louis Fed Alberto Musalem emphasized the potential risk of staging and growing expectations of inflation.

The American dollar indicator (DXY), which measures USD in relation to the six main currencies, has gained land near 106.50 at the time of writing. However, DXY faced the challenges among better market moods after US President Donald Trump announced potential progress in commercial negotiations with China, soothing market fears regarding tariffs.

However, US President Donald Trump announced plans to apply import duties on wood and forestry products next month, which may burden the Canadian dollar (CAD), because Canada remains a leading global manufacturer and exporter.

Meanwhile, Bank of Canada (BOC) may think about cutting rates after the January issue of CPI data that showed increased inflation in Canada. Traders will carefully watch the Friday Canadian retail report and BOC speech Governor Tiff Mackl in order to obtain further political signals.