• USD/CAD struggles to capitalize on a two-day-old recovery trend from a three-week through.
• The Fed rate-cut uncertainty caps the upside for the USD and acts as a headwind for the pair
• A downtick in Crude Oil prices undermines the Loonie and lends some support to the major.

The USD/CAD pair seesaws between tepid gains/minor losses during the Asian session on Thursday and for now, seems to have stalled its goodish rebound from the 1.3620-1.3615 region, or a three-week low touched on Tuesday. Spot prices currently trade near the 1.3700 mark, nearly unchanged for the day as traders now await the release of US macro data before placing fresh directional bets.

The market focus will remain squarely on the US Personal Consumption Expenditures (PCE) Price Index on Friday, which is seen as the Federal Reserve's (Fed) preferred inflation gauge. This will play a key role in influencing market expectations about the Fed's future policy decisions, which, in turn, will drive the US Dollar (USD) demand and provide some meaningful impetus to the USD/CAD pair. In the meantime, Thursday's US economic docket – featuring the final Q1 GDP print, Durable Goods Orders, the usual Initial Weekly Jobless Claims and Pending Home Sales – will be looked upon for short-term trading opportunities