The USD/CAD pair is trading higher above 1.3500 as Federal Reserve Chairman Jerome Powell indicates a cautious approach to future rate cuts. Powell’s comments have contributed to the strength of the US dollar against the Canadian dollar in recent trading sessions. Traders are closely monitoring the Fed’s stance on monetary policy as they assess the potential impact on currency markets. The pair’s movement above the key level of 1.3500 reflects increasing confidence in the US dollar’s strength relative to the Canadian dollar. Powell’s signal of a gradual approach to rate cuts has influenced market sentiment and is likely to continue shaping currency dynamics in the near term.