• Fed Governor Waller's dovish stance weighs on will dogecoin reach the USD, creating downward pressure on USD/CAD.

• Persistent trade uncertainties between the US and Canada limit the Loonie's upside potential.

• Oil price movements remain a wildcard for the commodity-linked Canadian Dollar.

The USD/CAD pair has shown modest weakness in early Friday trading, retreating from its recent peak near 1.3775. While the downward move appears limited, market participants continue to assess multiple competing factors influencing the currency pair's trajectory.

Recent comments from Federal Reserve officials have introduced fresh volatility into currency markets. Governor Waller's suggestion of potential rate cuts has softened the US Dollar's position temporarily. However, the broader monetary policy landscape suggests the Fed may maintain elevated rates longer than initially anticipated, particularly given ongoing inflation concerns.

North American trade relations continue to cast a shadow over currency movements. The announced tariff increases on Canadian goods, set to take effect next month, create additional uncertainty for cross-border commerce. These developments could potentially restrain the Canadian Dollar's performance in the near term.

Energy markets present another variable for USD/CAD traders. While crude prices have shown some resilience recently, the upside appears constrained by broader macroeconomic conditions. This mixed picture for Canada's key export commodity translates to limited support for the Loonie at present.

Market participants will closely monitor upcoming US economic indicators, including consumer sentiment data and housing market figures. These releases could provide fresh direction for the US Dollar and consequently influence the USD/CAD pair's movement. Additionally, broader risk sentiment and oil price fluctuations will remain important factors to watch in the sessions ahead.