USD/CAD Exchange Rate Edges Higher, But Bearish Bias Remains

The USD/CAD exchange rate continues its upward trend, reaching around 1.3840 during Asian hours on Friday. Despite this gain, technical analysis suggests a bearish bias due to the pair's position within a descending channel pattern.

According to Scotiabank strategists, underlying market conditions remain calm, but they caution that US inflation data could lead to increased volatility in the coming days. They also note that strengthening crude prices and positive Canadian terms of trade may not be fully reflected in the current CAD value.