USD/CAD trades near 1.3800 after pulling back from weekly highs as Oil prices rise

• USD/CAD loses ground as the Canadian Dollar receives support from improved crude Oil prices.
• WTI price advances amid easing tariff risks and expectations of tighter supply.
• A US federal court has blocked Trump to impose broad "Liberation Day" tariffs from taking effect.

USD/CAD loses ground after registering gains in the previous two consecutive sessions, trading around 1.3820 during the European hours on Thursday. The pair depreciates as the commodity-linked Canadian Dollar (CAD) receives support from improved crude Oil prices.

West Texas Intermediate (WTI) Oil price extends its gains for the second successive day, trading around $62.60 per barrel at the time of writing. Crude Oil prices receive support from improving market sentiment from reduced tariff risks and prospects of tighter supply.

The latest CPI report showed headline inflation fell in Canada mainly due to a carbon tax cut, but core inflation rose, which is closely gauged by the Bank of Canada (BoC). Therefore, traders remain uncertain on whether the Bank of Canada will deliver another rate cut next week. Canada's Gross Domestic Product Annualized for the first quarter, due on Friday, will be observed to gain insights into the Canadian economy.

Additionally, the USD/CAD pair depreciates as the US Dollar (USD) retreats from weekly high of 100.53 marked on Thursday. The US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is trading around 100.00 at the time of writing. Traders likely await the preliminary US Q1 Gross Domestic Product (GDP) data, Personal Consumption Expenditures Prices QoQ, and Initial Jobless Claims, scheduled to be released on Thursday.

The US Dollar received support as halting of US President Donald Trump's "Liberation Day" tariffs from taking effect by a federal court. A three-judge panel at the Court of International Trade in Manhattan ruled Trump of lacking the authority and declaring the executive orders issued on 2 April unlawful.

The Trump administration, on April 2, announced higher duties on imports from countries with large trade surpluses, such as China and the European Union, with introducing a 10% baseline tariff on most goods entering the US. Trump appears unlikely to back down as posted on his social media app Truth Social that he is on a "Mission from God".