USD/CAD retakes 1.3700, eyes multi-week top amid a broadly firmer USD

• USD/CAD regains positive traction amid the emergence of fresh USD buying.
• Reduced Fed rate cut bets act as a tailwind for the buck and the currency pair.
• Trade-related uncertainties undermine the Loonie amid subdued Oil prices.

The USD/CAD pair attracts some dip-buying during the Asian session on Thursday and climbs further beyond the 1.3700 mark amid a broadly firmer US Dollar (USD). Spot prices have now reversed the previous day's retracement slide from a three-week high and seem poised to appreciate further.

US President Donald Trump contradicted media reports that he was planning to oust Federal Reserve (Fed) Chair Jerome Powell and acknowledged that many have said that such a move would disrupt the markets. Adding to this, the growing acceptance that the US central bank would delay cutting interest rates assists the USD to regain positive traction following the previous day's good two-way price swings and lends support to the USD/CAD pair.

The Canadian Dollar (CAD), on the other hand, is undermined by persistent trade-related uncertainties. In fact, Trump last week announced a 35% tariff on imports from Canada and told Canadian Prime Minister Mark Carney the new rate would go into effect on August 1. Trump added that levies would increase further if Canada retaliated. Adding to this, a 50% tariff on US copper imports keeps the CAD depressed and further benefits the USD/CAD pair.

Meanwhile, Crude Oil prices struggle to attract any meaningful buyers and languish near the lowest level in over two weeks, touched on Wednesday. This, in turn, does little to influence the commodity-linked Loonie or hinder the USD/CAD pair's move up. Traders now look to the US economic docket - featuring monthly Retail Sales, Weekly Initial Jobless Claims, and the Philly Fed Manufacturing Index - for some impetus later during the North American session.