The USD/CAD pair is experiencing a decline as improving risk appetite weakens the US Dollar. The US Dollar Index is down by 0.23% to near 105.60, as US Treasury yields have also decreased. US Durable Goods Orders saw a significant increase in March, driven by strong demand for transport equipment. However, core goods, excluding transportation, fell short of expectations.
On Thursday, preliminary GDP data for the US is expected to show a slowdown in growth rate, providing insights into the strength of the economy. The Canadian Dollar struggled after lower Retail Sales data was released, leading to speculation that the Bank of Canada may consider cutting interest rates in June. This may put pressure on the Loonie Dollar.