USD/CAD holds below 1.4400 on weaker US Dollar, lower US yields

• USD/CAD trades with a mild negative bias near 1.4395 in Friday's early Asian session. 
• US Retail Sales rose less than expected in December 2024.
• BoC expects to end quantitative tightening in the first half of 2025. 

The USD/CAD pair trades with mild losses around 1.4395 during the early Asian session on Friday, pressured by the weakening of the US Dollar (USD) and a decline in US yields across the curve. Later on Friday, investors will keep an eye on the US housing data for December, including Building Permits and Housing Starts. Also, the US Industrial Production will be released. 

Data released by the US Census Bureau on Thursday showed that US Retail Sales rose by 0.4% MoM in December, reaching $729.2 billion. This reading came in weaker than the market expectations of a 0.6% rise and lower than the previous reading of a 0.8% increase (revised from 0.7%). The Greenback edges lower after the weaker US Retail Sales data. However, the downside for the USD might be limited amid the Federal Reserve's (Fed) cautious approach to cutting interest rates this year.

On the Loonie front, investors braced for potential US trade tariffs by US President-elect Donald Trump and the Bank of Canada (BoC) said it would end its quantitative tightening program in the coming months. BoC Deputy Governor Toni Gravelle said on Thursday that although the BoC is expected to end its quantitative tightening program in 2025, the Canadian central bank won't be immediately pivoting into a similar quantitative easing structure as it has done in recent years.