• USD/CAD is putting efforts to shift the business above 1.3520 amid anxiety ahead of US Inflation.
• Federal Reserve is likely to consider one more rate hike in May amid tight labor market conditions.
• Bank of Canada would keep rates steady as Canada’s inflation is softening meaningfully.
• USD/CAD is auctioning in a Rising Channel, however, the upside momentum looks weak.

USD/CAD is making efforts in shifting business above the immediate resistance of 1.3520 in the Asian session. The Loonie asset is gaining traction as investors are awaiting the release of the United States inflation figures and the interest rate decision by the Bank of Canada (BoC), which will release on Wednesday.

S&P500 futures have turned negative after surrendering opening gains as geopolitical tension between China and Taiwan has underpinned the risk aversion theme. Also, investors are cautionary for US equities as the quarterly result season will kick off sooner. 

Meanwhile, the US Dollar Index (DXY) is continuously refreshing day’s high as tight US labor market conditions have strengthened hopes of more rate hikes from the Federal Reserve (Fed). The USD Index has printed a high of 102.25. The US Treasury yields are showing a subdued performance despite rising odds of a hawkish Federal Reserve policy for May.